Abstract
Recent research indicates that there are robust examples of overlapping generations economies in which there are indeterminate equilibria without fiat money and equilibria with more than one dimension of indeterminacy. This paper presents simple examples of a stationary, pure exchange overlapping generations economy with one good in each period and a representative consumer, who lives for three periods, in each generation. These examples exhibit every possible form of indeterminacy and instability. Furthermore, the parameters of the principal example agree with empirical evidence. We use our examples as case studies for analyzing the problems involved in computing the equilibria of such economies.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 219-243 |
| Number of pages | 25 |
| Journal | Journal of Public Economics |
| Volume | 42 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jul 1990 |
Bibliographical note
Funding Information:*The research presented in this paper was funded by Grants SES-82-09448, SES-85-09484, and SES-87-08616 from the National Science Foundation. We are grateful to Andreu Mas-Cole11 for helpful advice and to Raees Hussain for assistance with the figures.
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