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

Abstract

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
Volume50
Issue number2
Publication statusPublished - 1999 Jun
Externally publishedYes

Fingerprint

Overlapping generations model
Dynamical systems
Determinacy
Indeterminacy of equilibrium
Indeterminacy
JEL classification
Perfect foresight
Time horizon
Overlapping generations
Substitutability

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

A characterization of the dynamical system in a two-sector overlapping-generations model : The case of unbounded growth. / Hashimoto, Hiroyuki; Sakuragawa, Masaya.

In: Japanese Economic Review, Vol. 50, No. 2, 06.1999, p. 138-147.

Research output: Contribution to journalArticle

@article{96ce63779be9416fb26d7e597a659e41,
title = "A characterization of the dynamical system in a two-sector overlapping-generations model: The case of unbounded growth",
abstract = "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.",
author = "Hiroyuki Hashimoto and Masaya Sakuragawa",
year = "1999",
month = "6",
language = "English",
volume = "50",
pages = "138--147",
journal = "Japanese Economic Review",
issn = "1352-4739",
publisher = "Wiley-Blackwell",
number = "2",

}

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.

UR - http://www.scopus.com/inward/record.url?scp=0032802947&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0032802947&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:0032802947

VL - 50

SP - 138

EP - 147

JO - Japanese Economic Review

JF - Japanese Economic Review

SN - 1352-4739

IS - 2

ER -