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Endowments, patience types, and uniqueness in two-good HARA utility economies

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  • Andrea Loi

    (Università di Cagliari)

  • Stefano Matta

    (Università di Cagliari)

Abstract

This paper establishes a link between endowments, patience types, and the parameters of the HARA Bernoulli utility function that ensure equilibrium uniqueness in an economy with two goods and two impatience types with additive separable preferences. We provide sufficient conditions that guarantee uniqueness of equilibrium for any possible value of $$\gamma $$ γ in the HARA utility function $$\frac{\gamma }{1-\gamma }\left( b+\frac{a}{\gamma }x\right) ^{1-\gamma }$$ γ 1 - γ b + a γ x 1 - γ . The analysis contributes to the literature on uniqueness in pure exchange economies with two-goods and two agent types and extends the result in Loi and Matta (2022).

Suggested Citation

  • Andrea Loi & Stefano Matta, 2024. "Endowments, patience types, and uniqueness in two-good HARA utility economies," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 12(2), pages 157-165, December.
    • Handle: RePEc:spr:etbull:v:12:y:2024:i:2:d:10.1007_s40505-024-00269-7
    DOI: 10.1007/s40505-024-00269-7
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    References listed on IDEAS

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    1. Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
    2. Hens, Thorsten & Loeffler, Andras, 1995. "Gross substitution in financial markets," Economics Letters, Elsevier, vol. 49(1), pages 39-43, July.
    3. Giménez, Eduardo L., 2022. "Offer curves and uniqueness of competitive equilibrium," Journal of Mathematical Economics, Elsevier, vol. 98(C).
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