### Abstract

So-called "search equilibrium models" typically have multiple equilibria. In almost all studies on these models, only steady states are considered mainly because it is difficult to find non-stationary equilibria. This difficulty does not disappear even if we consider finite-horizon versions of these models. In this note, we propose an approach that might be useful to study non-stationary equilibria in these models. In particular, we consider a discrete-time and finitehorizon version of Diamond's (1982. JPE) model and show how to solve it backwardly. As an illustration, we compute a non-stationary equilibrium of a specific example, which exhibits a three-period cycle.

Original language | English |
---|---|

Pages (from-to) | 234-246 |

Number of pages | 13 |

Journal | Economics Bulletin |

Volume | 33 |

Issue number | 1 |

Publication status | Published - 2013 |

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### ASJC Scopus subject areas

- Economics, Econometrics and Finance(all)

### Cite this

*Economics Bulletin*,

*33*(1), 234-246.

**A backwardly solvable search equilibrium model.** / Hokari, Toru; Makioka, Shigeru; Yao, Masayuki.

Research output: Contribution to journal › Article

*Economics Bulletin*, vol. 33, no. 1, pp. 234-246.

}

TY - JOUR

T1 - A backwardly solvable search equilibrium model

AU - Hokari, Toru

AU - Makioka, Shigeru

AU - Yao, Masayuki

PY - 2013

Y1 - 2013

N2 - So-called "search equilibrium models" typically have multiple equilibria. In almost all studies on these models, only steady states are considered mainly because it is difficult to find non-stationary equilibria. This difficulty does not disappear even if we consider finite-horizon versions of these models. In this note, we propose an approach that might be useful to study non-stationary equilibria in these models. In particular, we consider a discrete-time and finitehorizon version of Diamond's (1982. JPE) model and show how to solve it backwardly. As an illustration, we compute a non-stationary equilibrium of a specific example, which exhibits a three-period cycle.

AB - So-called "search equilibrium models" typically have multiple equilibria. In almost all studies on these models, only steady states are considered mainly because it is difficult to find non-stationary equilibria. This difficulty does not disappear even if we consider finite-horizon versions of these models. In this note, we propose an approach that might be useful to study non-stationary equilibria in these models. In particular, we consider a discrete-time and finitehorizon version of Diamond's (1982. JPE) model and show how to solve it backwardly. As an illustration, we compute a non-stationary equilibrium of a specific example, which exhibits a three-period cycle.

UR - http://www.scopus.com/inward/record.url?scp=84882983212&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84882983212&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:84882983212

VL - 33

SP - 234

EP - 246

JO - Economics Bulletin

JF - Economics Bulletin

SN - 1545-2921

IS - 1

ER -