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Replica Core Equivalence Theorem: An Extension of Debreu-Scarf Limit Theorem to Double Infinity Monetary Economies

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Listed:
  • Ken Urai

    (Graduate School of Economics, Osaka University)

  • Hiromi Murakami

    (Graduate School of Economics, Osaka University)

Abstract

An overlapping generations model with the double infinity of commodities and agents is the most fundamental framework to introduce outside money into a static economic model. In this model, competitive equilibria may not necessarily be Pareto-optimal. Although Samuelson (1958) emphasized the role of fiat money as a certain kind of social contract, we cannot characterize it as a cooperative game-theoretic solution like a core. In this paper, we obtained a finite replica core characterization of monetary equilibria. Preferences are not necessarily assumed to be ordered.

Suggested Citation

  • Ken Urai & Hiromi Murakami, 2014. "Replica Core Equivalence Theorem: An Extension of Debreu-Scarf Limit Theorem to Double Infinity Monetary Economies," Discussion Papers in Economics and Business 14-35, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1435
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    References listed on IDEAS

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    1. Esteban, J., 1986. "A characterization of the core in overlapping-generations economies," Journal of Economic Theory, Elsevier, vol. 39(2), pages 439-456, August.
    2. Aliprantis, Charalambos D. & Burkinshaw, Owen, 1990. "An overlapping generations model core equivalence theorem," Journal of Economic Theory, Elsevier, vol. 50(2), pages 362-380, April.
    3. Sonnenschein, Hugo, 1974. "An Axiomatic Characterization of the Price Mechanism," Econometrica, Econometric Society, vol. 42(3), pages 425-433, May.
    4. Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66(6), pages 467-467.
    5. Gerard Debreu, 1963. "On a Theorem of Scarf," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 30(3), pages 177-180.
    6. Esteban, J. & Millan, T., 1990. "Competitive equilibria and the core of overlapping generations economies," Journal of Economic Theory, Elsevier, vol. 50(1), pages 155-174, February.
    7. 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.
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    More about this item

    Keywords

    Monetary Equilibrium; Overlapping Generations Model; Core Equivalence; Replica Econ-omy; Non-Orderd Preference;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • E00 - Macroeconomics and Monetary Economics - - General - - - General

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