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Existence of equilibrium on OLG economies with durable goods

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Abstract

We consider a standard pure exchange overlapping generations economy. The demographic structure consists of a new cohort of agents at each period with an economic activity extended over two successive periods. Our model incorporates durable goods that may be stored from one period to a successive period through a linear technology. In this model, we intend to study the mechanism of transfer between generations, and we show that the existence of an equilibrium can be established by considering an equivalent economy “without” durable goods, where the agents economic activity is extended over three successive periods

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  • Lalaina Rakotonindrainy, 2014. "Existence of equilibrium on OLG economies with durable goods," Documents de travail du Centre d'Economie de la Sorbonne 14046, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    • Handle: RePEc:mse:cesdoc:14046
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    1. Jean-Marc Bonnisseau & Lalaina Rakotonindrainy, 2017. "Existence of equilibrium in OLG economies with increasing returns," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(1), pages 111-129, January.
    2. Balasko, Yves & Cass, David & Shell, Karl, 1980. "Existence of competitive equilibrium in a general overlapping-generations model," Journal of Economic Theory, Elsevier, vol. 23(3), pages 307-322, December.
    3. Michael Magill & Martine Quinzii, "undated". "The Stock Market in the Overlapping Generations," Department of Economics 99-13, California Davis - Department of Economics.
    4. Monique Florenzano, 2007. "General equilibrium," Post-Print halshs-00250167, HAL.
    5. Balasko, Yves & Shell, Karl, 1981. "The overlapping-generations model. III. The case of log-linear utility functions," Journal of Economic Theory, Elsevier, vol. 24(1), pages 143-152, February.
    6. Balasko, Yves & Shell, Karl, 1980. "The overlapping-generations model, I: The case of pure exchange without money," Journal of Economic Theory, Elsevier, vol. 23(3), pages 281-306, December.
    7. Balasko, Yves & Shell, Karl, 1981. "The overlapping-generations model. II. The case of pure exchange with money," Journal of Economic Theory, Elsevier, vol. 24(1), pages 112-142, February.
    8. Florenzano Monique & Geistdoerfer Monique, 1980. "Equilibre économique général transitif et intransitif (l'). problèmes d'existence," CEPREMAP Working Papers (Couverture Orange) 8004, CEPREMAP.
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    1. Jean-Marc Bonnisseau & Lalaina Rakotonindrainy, 2015. "A note on the characterization of optimal allocations in OLG models with multiple goods," Post-Print halshs-01158117, HAL.
    2. Jean-Marc Bonnisseau & Lalaina Rakotonindrainy, 2015. "A note on the characterization of optimal allocations in OLG economies with multiple goods," Documents de travail du Centre d'Economie de la Sorbonne 15003, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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    More about this item

    Keywords

    Overlapping generations model; durable goods; irreducibility; equilibrium; existence;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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