On the existence and uniqueness of stationary equilibrium in Bewley economies with production

• 成果类型: Article
• 署名作者: Acikgoez, Oemer T.
• 署名单位: Yeshiva University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.10.006
• 发表日期: 2018
• 页码: 18-55
• 关键词: Bewley-Aiyagari model; Recursive competitive equilibrium

摘要

I prove existence of stationary recursive competitive equilibrium in Bewley economies with production under specifications in which (i) the utility function is allowed to be unbounded, and (ii) the underlying discrete idiosyncratic productivity process can take any form, aside from mild restrictions. Some of the intermediate results provide theoretical basis for assumptions often made in the quantitative macroeconomics literature. By providing an example, I illustrate that the equilibrium is not necessarily unique, even under typical specifications of the model, and discuss the underlying reasons for multiplicity. (C) 2017 Published by Elsevier Inc.