Existence and uniqueness of steady-state equilibrium in a two-sector overlapping generations model

• 成果类型: Article; Proceedings Paper
• 署名作者: Li, Jinlu; Lin, Shuanglin
• 署名单位: Peking University; University of Nebraska System; University System of Ohio; Shawnee State University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2007.09.003
• 发表日期: 2008
• 页码: 255-275
• 关键词: Existence; uniqueness; equilibrium; two-sector overlapping generations model

摘要

In his seminal paper Galor [A two-sector overlapping generations-model: a global characterization of the dynamical system, Econometrica 60 (1992) 1351-1386] establishes conditions for the existence of equilibrium in the two-sector overlapping generations (OLG) model. Although appealing theoretically, these conditions are implicit and not easy to apply. This paper develops new theorems on the existence and uniqueness of steady-state equilibrium in the two-sector OLG model. We provide explicit conditions on the utility and production functions for the existence and uniqueness of equilibrium, with which one only needs to check the derivatives of the production and utility functions and their interactions, without requiring solving for the savings function and its derivatives. We present detailed steps to check the existence and uniqueness of equilibrium and provide illustrative examples. (C) 2007 Elsevier Inc. All rights reserved.