TY - JOUR
T1 - Stationary Markovian equilibrium in overlapping generation models with stochastic nonclassical production and Markov shocks
AU - Morand, Olivier F.
AU - Reffett, Kevin
PY - 2007/4/1
Y1 - 2007/4/1
N2 - This paper provides new sufficient conditions for the existence and computation of Markovian equilibrium for a large class of OLG models with Markov shocks to production. The economies considered allow for a very large class of "reduced-form" production functions, including those that are nonclassical, encompassing stochastic OLG models with social security, income redistribution policies, taxation, valued fiat money, production nonconvexities, and monopolistic competition. Our approach combines aspects of both topological and order theoretic fixed point theory and provides globally stable successive approximations algorithms for computing extremal Markovian equilibrium objects.
AB - This paper provides new sufficient conditions for the existence and computation of Markovian equilibrium for a large class of OLG models with Markov shocks to production. The economies considered allow for a very large class of "reduced-form" production functions, including those that are nonclassical, encompassing stochastic OLG models with social security, income redistribution policies, taxation, valued fiat money, production nonconvexities, and monopolistic competition. Our approach combines aspects of both topological and order theoretic fixed point theory and provides globally stable successive approximations algorithms for computing extremal Markovian equilibrium objects.
KW - Markov equilibrium
KW - Overlapping generations
UR - http://www.scopus.com/inward/record.url?scp=34047273578&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=34047273578&partnerID=8YFLogxK
U2 - 10.1016/j.jmateco.2006.07.005
DO - 10.1016/j.jmateco.2006.07.005
M3 - Article
AN - SCOPUS:34047273578
SN - 0304-4068
VL - 43
SP - 501
EP - 522
JO - Journal of Mathematical Economics
JF - Journal of Mathematical Economics
IS - 3-4
ER -