Recursive Equilibrium in Stochastic Overlapping-Generations Economies

Alessandro Citanna (1) , Paolo Siconolfi (2)

1 GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC
2 Graduate School of Business

We prove the generic existence of a recursive equilibrium for overlapping-generations economies with uncertainty. "Generic" here means in a residual set of utilities and endowments. The result holds provided there is a sufficient number of potentially different individuals within each cohort.

Keywords: Overlapping generations; Markov equilibrium; recursive equilibrium; transversality theorem

Domains: Humanities and Social Sciences; Economics and Finance; Economy and decision science

Alessandro Citanna, Paolo Siconolfi. Recursive Equilibrium in Stochastic Overlapping-Generations Economies. Econometrica, 2010, 78 (1), pp.309-347. ⟨10.3982/ECTA7219⟩. ⟨hal-00537071⟩