TY - JOUR
T1 - Stationary Ramsey Equilibria under Uncertainty
AU - Becker, Robert
AU - Zilcha, Itzhak
N1 - Funding Information:
* We are grateful to Fwu-Ranq Chang, Graciella Chichilnisky, and Michael Kaganovich for their comments. We are deeply grateful to our referees for very insightful comments which have resulted in a significant improvement to our paper. The second author gratefully acknowledges support from the Foerder Institute for Economic Research.
PY - 1997/7
Y1 - 1997/7
N2 - Deterministic dynamic equilibrium models with borrowing constraints and heterogeneous agents exhibit stationary solutions where the most patient household owns the economy's capital stock. An example shows that this result does not carry over to stationary stochastic environments. We prove, under some conditions, the existence of a stationary rational expectations equilibrium in two related setups. The first is the existence of a stationary Nash equilibrium where each agent's payoff depends on his capital process and the capital processes of the remaining agents. The second existence theorem applies to a stationary competitive equilibrium model.Journal of Economic LiteratureClassification Numbers: E13, E21, D80.
AB - Deterministic dynamic equilibrium models with borrowing constraints and heterogeneous agents exhibit stationary solutions where the most patient household owns the economy's capital stock. An example shows that this result does not carry over to stationary stochastic environments. We prove, under some conditions, the existence of a stationary rational expectations equilibrium in two related setups. The first is the existence of a stationary Nash equilibrium where each agent's payoff depends on his capital process and the capital processes of the remaining agents. The second existence theorem applies to a stationary competitive equilibrium model.Journal of Economic LiteratureClassification Numbers: E13, E21, D80.
UR - http://www.scopus.com/inward/record.url?scp=0001529668&partnerID=8YFLogxK
U2 - 10.1006/jeth.1997.2272
DO - 10.1006/jeth.1997.2272
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AN - SCOPUS:0001529668
SN - 0022-0531
VL - 75
SP - 122
EP - 140
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -