The relationship between general equilibrium models with infinite-lived agents and overlapping generations models, and some applications
| Autor: | Pham, Ngoc-Sang |
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| Rok vydání: | 2024 |
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| Druh dokumentu: | Working Paper |
| Popis: | We prove that a two-cycle equilibrium in a general equilibrium model with infinitely-lived agents also constitutes an equilibrium in an overlapping generations (OLG) model. Conversely, an equilibrium in an OLG model that satisfies additional conditions is part of an equilibrium in a general equilibrium model with infinitely-lived agents. Applying this result, we demonstrate that equilibrium indeterminacy and rational asset price bubbles may arise in both types of models. |
| Databáze: | arXiv |
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