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Competitive Equilibrium in an Overlapping Generations Model with Production Loans

Author

Listed:
  • Dihai Wang

    (Fudan University)

  • Gaowang Wang

    (Central University of Finance and Economics)

  • Heng-fu Zou

    (Central University of Finance and Economics)

Abstract

The paper shows that there do exist two kinds of steady state equilibria in the overlapping generations models with consumption and production loans, similar to the pure exchagne economies examined by Gale (1973). Furthermore, the local stability properties of these two (kinds of) steady states are also investigated.

Suggested Citation

  • Dihai Wang & Gaowang Wang & Heng-fu Zou, 2012. "Competitive Equilibrium in an Overlapping Generations Model with Production Loans," CEMA Working Papers 556, China Economics and Management Academy, Central University of Finance and Economics.
    • Handle: RePEc:cuf:wpaper:556
    as

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    References listed on IDEAS

    as
    1. Bliss, Christopher, 2008. "Multiple equilibrium in the Diamond Capital Model," Economics Letters, Elsevier, vol. 100(1), pages 143-145, July.
    2. Gale, David, 1973. "Pure exchange equilibrium of dynamic economic models," Journal of Economic Theory, Elsevier, vol. 6(1), pages 12-36, February.
    3. Hiraguchi, Ryoji, 2012. "Multiple equilibrium in the overlapping generations model revisited," Economics Letters, Elsevier, vol. 115(1), pages 70-72.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Multiple steady state paths; Overlapping generations; Production loans;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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