On equilibrium for overlapping generations organizations

• 成果类型: Article
• 署名作者: Prescott, EC; Ríos-Rull, JV
• 署名单位: University of Pennsylvania; Arizona State University; Arizona State University-Tempe; National Bureau of Economic Research; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2005.00360.x
• 发表日期: 2005
• 页码: 1065-1080
• 关键词: transfer institutions; core; MODEL

摘要

Necessary conditions for equilibrium are that beliefs about the behavior of other agents are rational and individuals maximize. We argue that in stationary OLG environments this implies that any future generation in the same situation as the initial generation must do as well as the initial generation did in that situation. We conclude that the existing equilibrium concepts in the literature do not satisfy this condition. We then propose an alternative equilibrium concept, organizational equilibrium that satisfies this condition. We show that equilibrium exists, it is unique, and it improves over autarky without achieving optimality. Moreover, the equilibrium can be readily found by solving a maximization program.