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Multiple equilibrium in the Diamond Capital Model

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  • Bliss, Christopher

Abstract

When the EIS varies with consumption, multiple, even uncountably many, steady-state solutions may be obtained to the Diamond Capital Model. The many equilibria are solutions to a differential equation for the EIS value. This technique has general application.

Suggested Citation

  • Bliss, Christopher, 2008. "Multiple equilibrium in the Diamond Capital Model," Economics Letters, Elsevier, vol. 100(1), pages 143-145, July.
    • Handle: RePEc:eee:ecolet:v:100:y:2008:i:1:p:143-145
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    Cited by:

    1. Dihai Wang & Gaowang Wang & Heng-fu Zou, 2017. "Competitive Equilibrium in an Overlapping Generations Model with Production Loans," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 12(2), pages 268-279, June.
    2. Hiraguchi, Ryoji, 2012. "Multiple equilibrium in the overlapping generations model revisited," Economics Letters, Elsevier, vol. 115(1), pages 70-72.

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