Intertemporal separability in overlapping-generations models

Timothy J. Kehoe, David K. Levine

Research output: Contribution to journalArticlepeer-review

9 Scopus citations


In a pure exchange overlapping-generations model with many goods, but a single consumer with preferences separable between two periods of life, there are (generically) finitely many equilibria in which money has no value. If money has value, then (generically) there is at most one dimension of indeterminacy. This property does not generalize to a model with many consumers and general preferences. It is shown why a separable representative consumer implies such strong conclusions. It is also shown that the absence of income effects leads to similar results.

Original languageEnglish (US)
Pages (from-to)216-226
Number of pages11
JournalJournal of Economic Theory
Issue number2
StatePublished - Dec 1984

Bibliographical note

Funding Information:
gratitude to J. S. Jordan, who pointed out to us the key preferences, and to John Geanakopolos. The work of the National Science Foundation under Grant SES-8209448.


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