Abstract
I refine and extend the Markov perfect equilibrium of the social security policy game in Forni (2005) for the special case of logarithmic utility. Under the restriction that the policy function be continuous, instead of differentiable, the equilibrium is globally well defined and its dynamics always stable.
| Original language | English |
|---|---|
| Journal | Review of Economic Dynamics |
| Volume | 14 |
| Issue number | 3 |
| Pages (from-to) | 549-552 |
| Number of pages | 4 |
| ISSN | 1094-2025 |
| Publication status | Published - Jul 2011 |
Keywords
- Faculty of Social Sciences
- social security
- overlapping generation models
- Markov equilibria