Existence and Uniqueness of Equilibrium in Nonoptimal Unbounded Infinite Horizon Economies

Arbeitspapier

In applied work in macroeconomics and finance, nonoptimal infinite horizon economies are often studied in which the state-space is unbounded. Important examples of such economies are single-sector growth models with production externalities, valued fiat money, monopolistic competition, and/or distortionary government taxation. Although sufficient conditions for existence and uniqueness of Markovian equilibrium are weIl known for the compact state space case, no similar sufficient conditions exist for unbounded growth. This paper provides such a set of sufficient conditions, and presents a computational algorithm that will prove asymptotically consistent when computing Markovian equilibrium.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 02-085/2

Classification and Topics

• Classification: Wirtschaft ; Existence and Stability Conditions of Equilibrium ; Computable and Other Applied General Equilibrium Models ; Externalities
• Subject: Equilibrium ; Dynamic Models ; Unbounded ; Nonoptimal ; Dynamisches Modell ; Gleichgewicht

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Morand, Olivier F. ; Reffett, Kevin L.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2002

Further information

• Handle: http://hdl.handle.net/10419/86043
• Last update: 10.03.2025, 11:44 AM CET