Regularity of a general equilibrium in a model with infinite past and future

• Type: Article in International Scientific Journal
• Date: 2018

Authors

Gorokhovsky, A (Author) Other; Rubinchik, A (Author) Other

Journal

Title: Journal of Mathematical Economics

Vol. 74

Pages: 35-45

ISSN: 0304-4068

Publisher: Elsevier

Indexing

ISI Web of Knowledge - 2 Citations

Scopus - 1 Citation

Other information

Authenticus ID: P-017-3SC

DOI: 10.1016/j.jmateco.2017.10.006

Abstract (EN): We develop easy-to-verify conditions to assure that a comparative statics exercise in a dynamic general equilibrium model is feasible, i.e., the implicit function theorem is applicable. Consider an equilibrium equation, ¿(k,E)=k of a model where an equilibrium variable (k) is a continuous bounded function of time, real line, and the policy parameter (E) is a locally integrable function of time. The key conditions are time invariance of ¿ and the requirement that the Fourier transform of the derivative of ¿ with respect to k does not return unity. Further, in a general constant-returns-to-scale production and homogeneous life-time-utility overlapping generations model we show that the first condition is satisfied at a balanced growth equilibrium and the second condition is satisfied for ¿almost all¿ policies that give rise to such equilibria.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 11