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Existence of Stationary Markov Perfect Equilibria in Stochastic Altruistic Growth Economies

Author

Listed:
  • Łukasz Balbus

    (University of Zielona Góra)

  • Anna Jaśkiewicz

    (Wrocław University of Technology)

  • Andrzej S. Nowak

    (University of Zielona Góra)

Abstract

We study an altruistic growth model with production uncertainty viewed as an intergenerational stochastic game. The existence of stationary Markov perfect equilibria is proved under general assumptions on utility functions for the generations and for non-atomic transition probabilities. This paper answers some issues that arose from the literature in the 1980s decade.

Suggested Citation

  • Łukasz Balbus & Anna Jaśkiewicz & Andrzej S. Nowak, 2015. "Existence of Stationary Markov Perfect Equilibria in Stochastic Altruistic Growth Economies," Journal of Optimization Theory and Applications, Springer, vol. 165(1), pages 295-315, April.
    • Handle: RePEc:spr:joptap:v:165:y:2015:i:1:d:10.1007_s10957-014-0555-1
    DOI: 10.1007/s10957-014-0555-1
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    References listed on IDEAS

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    Cited by:

    1. Cingiz, Kutay & Flesch, János & Herings, P. Jean-Jacques & Predtetchinski, Arkadi, 2016. "Doing it now, later, or never," Games and Economic Behavior, Elsevier, vol. 97(C), pages 174-185.
    2. Łukasz Balbus & Anna Jaśkiewicz & Andrzej S. Nowak, 2020. "Markov perfect equilibria in a dynamic decision model with quasi-hyperbolic discounting," Annals of Operations Research, Springer, vol. 287(2), pages 573-591, April.
    3. Balbus, Łukasz & Jaśkiewicz, Anna & Nowak, Andrzej S., 2016. "Non-paternalistic intergenerational altruism revisited," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 27-33.
    4. János Flesch & Arkadi Predtetchinski, 2017. "A Characterization of Subgame-Perfect Equilibrium Plays in Borel Games of Perfect Information," Mathematics of Operations Research, INFORMS, vol. 42(4), pages 1162-1179, November.
    5. Nicole Bauerle & Anna Ja'skiewicz, 2015. "Stochastic Optimal Growth Model with Risk Sensitive Preferences," Papers 1509.05638, arXiv.org.
    6. Anna Jaśkiewicz & Andrzej S. Nowak, 2021. "Markov decision processes with quasi-hyperbolic discounting," Finance and Stochastics, Springer, vol. 25(2), pages 189-229, April.
    7. Bäuerle, Nicole & Jaśkiewicz, Anna, 2018. "Stochastic optimal growth model with risk sensitive preferences," Journal of Economic Theory, Elsevier, vol. 173(C), pages 181-200.
    8. Jaśkiewicz, Anna & Nowak, Andrzej S., 2022. "A note on topological aspects in dynamic games of resource extraction and economic growth theory," Games and Economic Behavior, Elsevier, vol. 131(C), pages 264-274.
    9. Hubert Asienkiewicz & Łukasz Balbus, 2019. "Existence of Nash equilibria in stochastic games of resource extraction with risk-sensitive players," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 27(3), pages 502-518, October.

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