TY - JOUR
T1 - A characterization of the dynamical system in a two-sector overlapping-generations model
T2 - The case of unbounded growth
AU - Hashimoto, Hiroyuki
AU - Sakuragawa, Masaya
PY - 1999/6
Y1 - 1999/6
N2 - This paper characterizes perfect-foresight equilibria in a two-sector overlapping-generations economy for the case of unbounded growth. The analysis demonstrates that gross substitutability in consumption is not sufficient to ensure the determinacy of equilibrium. Unlike Boldrin and Rustichini (1994), indeterminacy of equilibria can arise within the framework of an overlapping-generations model with convex technology. The finite time horizon of agents is the source of such indeterminacy. JEL Classification Number: 041.
AB - This paper characterizes perfect-foresight equilibria in a two-sector overlapping-generations economy for the case of unbounded growth. The analysis demonstrates that gross substitutability in consumption is not sufficient to ensure the determinacy of equilibrium. Unlike Boldrin and Rustichini (1994), indeterminacy of equilibria can arise within the framework of an overlapping-generations model with convex technology. The finite time horizon of agents is the source of such indeterminacy. JEL Classification Number: 041.
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U2 - 10.1111/1468-5876.00109
DO - 10.1111/1468-5876.00109
M3 - Article
AN - SCOPUS:0032802947
SN - 1352-4739
VL - 50
SP - 138
EP - 147
JO - Japanese Economic Review
JF - Japanese Economic Review
IS - 2
ER -