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Stochastic OLG Models, Market Structure, and Optimality

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  • Chattopadhyay, Subir
  • Gottardi, Piero

Abstract

For a general class of pure exchange OLG economies under uncertainty, we provide a complete characterization of the efficency properties of competitive equilibria when markets are only sequentially complete and the criterion of efficency is conditional Pareto optimality. We also consider a particular case in which markets fail to be even sequentially complete and provide a characterization when the criterion of efficency is weakened to ex post Pareto optimality.
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  • Chattopadhyay, Subir & Gottardi, Piero, 1999. "Stochastic OLG Models, Market Structure, and Optimality," Journal of Economic Theory, Elsevier, vol. 89(1), pages 21-67, November.
    • Handle: RePEc:eee:jetheo:v:89:y:1999:i:1:p:21-67
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