Equilibrium in an overlapping generations model with altruistic preference when markets are frictional. (Q698399)

This paper generalizes that of \textit{S. Rao Aiyagari} [J. Econ. Theory 47, 130--152 (1989; Zbl 0684.90013)], taking into account transaction costs. Two theorems are proved, firstly, that an equilibrium is existing. To this purpose a slightly modified version of a theorem of \textit{W. Shafer} and \textit{H. Sonnenschein} [J. Math. Econ. 2, 345--348 (1975; Zbl 0312.90062)] is used. Secondly, strengthening the assumptions, the efficiency of equilibrium is shown. In a big introducing section of the paper the used (OLG-) model is clearly explained.