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Journal Articles Economic Theory Year : 2008

On the nonexistence of recursive equilibrium in stochastic OLG economies

Paolo Siconolfi
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Abstract

We study a class of stochastic Overlapping generations (OLG) economies that have one-memory equilibria, that is equilibria that are determined by the current and past realizations of the states of uncertainty. This class is negligible, but important. In particular, it contains all the known examples of nonexistence of recursive equilibrium. We show that, within this restricted domain, the existence of recursive equilibrium is actually typical, and such examples are therefore nonrobust.

Dates and versions

hal-00480206 , version 1 (03-05-2010)

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Alessandro Citanna, Paolo Siconolfi. On the nonexistence of recursive equilibrium in stochastic OLG economies. Economic Theory, 2008, Vol.37, n°3, p.417-437. ⟨10.1007/s00199-007-0298-4⟩. ⟨hal-00480206⟩

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