Existence and uniqueness of equilibrium in nonoptimal unbounded infinite horizon economies

• 成果类型: Article
• 署名作者: Morand, OF; Reffett, KL
• 署名单位: University of Connecticut; Arizona State University; Arizona State University-Tempe
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(03)00082-5
• 发表日期: 2003
• 页码: 1351-1373
• 关键词: equilibrium; Dynamic models; unbounded; nonoptimal

摘要

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 well 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. (C) 2003 Elsevier B.V. All rights reserved.