A characterization of the dynamical system in a two-sector overlapping-generations model: The case of unbounded growth

Hiroyuki Hashimoto, Masaya Sakuragawa

Research output: Contribution to journalArticle


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.

Original languageEnglish
Pages (from-to)138-147
Number of pages10
JournalJapanese Economic Review
Issue number2
Publication statusPublished - 1999 Jun


ASJC Scopus subject areas

  • Economics and Econometrics

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