On the existence of sunspot equilibria in an overlapping generations model (Q1112712)
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scientific article; zbMATH DE number 4079124
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | On the existence of sunspot equilibria in an overlapping generations model |
scientific article; zbMATH DE number 4079124 |
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On the existence of sunspot equilibria in an overlapping generations model (English)
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1988
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The author proves the existence of sunspot equilibria in a one-commodity overlapping generations model without making stationary assumptions on preferences, endowments or nominal taxes. The crucial assumption he employs is that there is a continuum of perfect foresight equilibria. This seems a useful yet still restrictive assumption. The author also shows that consumption in a sunspot equilibrium lies within the range consistent with perfect foresight. How the model can be extended to the world with more than one commodity per period remains an open question.
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existence of sunspot equilibria
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one-commodity overlapping generations model
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continuum of perfect foresight equilibria
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