No |
SDES-2023-2 |
Title |
Sraffian indeterminacy of steady-state equilibria in the
Walrasian general equilibrium framework |
Author |
Naoki Yoshihara and Se Ho Kwak |
Abstract |
In contrast to Mandler’s (1999a; Theorem 6) generic determinacy of
steady-state equilibria, we first show that any non-trivial steady-state
equilibrium is indeterminate under a general overlapping generation economy
with a fixed Leontief technique. We also check that this indeterminacy
is generic. These results are obtained by explicitly introducing a
general model of every generation’s utility function and individual optimization
program to the overlapping generation economy, which also
verifies that Mandler’s (1999a; section 6) claim on generic determinacy
is invalid. We also argue the distinctiveness of our results in comparison
with the standard literature, like Calvo (1978), of overlapping generation
indeterminacy. |
Revised version published in |
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