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Sraffian indeterminacy of steady‐state equilibria in the Walrasian general equilibrium framework

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  • Naoki Yoshihara
  • Se Ho Kwak

Abstract

In contrast to Mandler's generic determinacy of steady‐state equilibria, we first show that any non‐trivial steady‐state equilibrium is indeterminate under a general overlapping generation (OLG) economy with a fixed Leontief technique. We also check that this indeterminacy is generic. These results are obtained by explicitly introducing a general model of every generation's utility function and individual optimization program to the OLG economy, which also verifies that Mandler's claim on generic determinacy is invalid. We also argue the distinctiveness of our results in comparison with the standard literature of OLG indeterminacy.

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  • Naoki Yoshihara & Se Ho Kwak, 2024. "Sraffian indeterminacy of steady‐state equilibria in the Walrasian general equilibrium framework," Metroeconomica, Wiley Blackwell, vol. 75(3), pages 377-395, July.
    • Handle: RePEc:bla:metroe:v:75:y:2024:i:3:p:377-395
    DOI: 10.1111/meca.12454
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    1. Yoshihara, Naoki & Veneziani, Roberto, 2023. "The general equilibrium effects of localised technological progress: A Classical approach," Journal of Mathematical Economics, Elsevier, vol. 109(C).

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    More about this item

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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