Abstract
I establish the uniqueness of a stationary equilibrium in a Bewley–Aiyagari model when the agents’ utility function exhibits constant relative risk aversion bounded above by 1 and the production function exhibits a certain gross substitute property.
Original language | English |
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Pages (from-to) | 435-450 |
Number of pages | 16 |
Journal | Economic Theory |
Volume | 69 |
Issue number | 2 |
DOIs | |
State | Published - 1 Mar 2020 |
Externally published | Yes |
Keywords
- Aggregate savings
- Bewley–Aiyagari model
- Stationary equilibrium
- Uniqueness of equilibrium
- heterogeneous agents