We thank John Geanakoplos, Felix Kubler, David Levine, Michael Magill, Herakles Polemarchakis, Martine Quinzii, and three anonymous referees for useful comments. The paper was written while the first author was visiting the Columbia Business School, whose financial support is gratefully acknowledged.
Recursive Equilibrium in Stochastic Overlapping-Generations Economies
Article first published online: 8 FEB 2010
© 2010 The Econometric Society
Volume 78, Issue 1, pages 309–347, January 2010
How to Cite
Citanna, A. and Siconolfi, P. (2010), Recursive Equilibrium in Stochastic Overlapping-Generations Economies. Econometrica, 78: 309–347. doi: 10.3982/ECTA7219
- Issue published online: 8 FEB 2010
- Article first published online: 8 FEB 2010
- Manuscript received June, 2007; final revision received June, 2009.
- Overlapping generations;
- Markov equilibrium;
- recursive equilibrium;
- transversality theorem
We prove the generic existence of a recursive equilibrium for overlapping-generations economies with uncertainty. “Generic” here means in a residual set of utilities and endowments. The result holds provided there is a sufficient number of potentially different individuals within each cohort.