Fluctuations in Overlapping Generations Economies

TY - UNPB

T1 - Fluctuations in Overlapping Generations Economies

AU - Tvede, Mich

N1 - JEL classification: D51, E32

PY - 2009

Y1 - 2009

N2 - In the present paper stationary pure-exchange overlapping generations economies with l  goods per date and m consumers per generation are considered. It is shown that for an open and dense set of utility functions there exist endowment vectors such that n-cycles exist for n = l +1 and l  = m. The approach to existence of endogenous fluctuations is basic in the sense that the prime ingredients are the implicit function theorem and linear algebra. Moreover the approach is applied to show that for an open and dense set of utility functions there exist endowment vectors such that sunspot equilibria, where prices at every date only depends on the state at that date, exist.

AB - In the present paper stationary pure-exchange overlapping generations economies with l  goods per date and m consumers per generation are considered. It is shown that for an open and dense set of utility functions there exist endowment vectors such that n-cycles exist for n = l +1 and l  = m. The approach to existence of endogenous fluctuations is basic in the sense that the prime ingredients are the implicit function theorem and linear algebra. Moreover the approach is applied to show that for an open and dense set of utility functions there exist endowment vectors such that sunspot equilibria, where prices at every date only depends on the state at that date, exist.

KW - Faculty of Social Sciences

KW - cycles

KW - sunspot equilibria

M3 - Working paper

BT - Fluctuations in Overlapping Generations Economies

PB - Department of Economics, University of Copenhagen

ER -