Determinacy of Equilibrium in Infinite Horizon Economics (Classic Reprint): A Perspective: A Perspective (Classic Reprint) - Softcover

Muller, Walter J.

Softcover

ISBN 10: 1330689712 ISBN 13: 9781330689714

Verlag: Forgotten Books, 2018

Inhaltsangabe

This book delves into the complex world of economic models and market equilibrium, addressing a fundamental issue of indeterminacy in the outcomes of these models. The author, an established expert in the field, provides an accessible and comprehensive analysis of the work of Muller and Woodford, whose research laid bare the potential for a wide range of equilibrium outcomes even within precisely defined economic models. The book highlights the significance of this indeterminacy, as it can render comparative statics a crucial tool for understanding the effects of parameter changes on equilibrium values impossible. By examining the work of Muller and Woodford, encompassing both stationary overlapping generations models with production and infinite-lived agents, the author provides valuable insights into the conditions under which indeterminacy may arise. This detailed analysis is situated within the broader context of the overlapping generations literature, optimal growth literature, and macroeconomic theory, demonstrating the relevance of Muller and Woodford's findings to a wide range of economic inquiry. The author skillfully presents complex concepts with clarity, guiding readers through the technicalities to grasp the essence of indeterminacy and its implications for economic modeling. The book concludes by emphasizing the importance of addressing indeterminacy in economic models, as it can significantly impact the reliability and effectiveness of these models in policy-making and economic analysis. By shedding light on the conditions that lead to indeterminacy and exploring potential solutions, this book is a valuable resource for economists, researchers, and anyone seeking to understand the complexities of economic equilibrium.

Über diesen Titel

Reseña del editor

Excerpt from Determinacy of Equilibrium in Infinite Horizon Economics: A Perspective

Muller and Woodford develop a stationary overlapping generations model with production, with infinite-lived as well as finite-lived consumers, and with nondepreciating assets called land that yield a stationary stream of consumption goods. There are n goods in each time period. Each generation of finite-lived agents is identical, and consists of a finite number of agents who consume in period t and t+1. There is also a generation 0 that consists of a finite number of agents who consume only in period 1. In addition, there is a finite set of infinite-lived agents that live in every period. Each infinite-lived agent has an additively separable utility function and an endowment that is the same in each period. Finally, there is a constant returns to scale production technology available in each period that allows production spanning two periods.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Reseña del editor

Excerpt from Determinacy of Equilibrium in Infinite Horizon Economics: A Perspective

A desirable property for the equilibria of any economic model is local determinacy. That is, one would like the specification of endowments, technology, and preferences in the model to suffice to uniquely determine the equilibrium values of all economic variables, at least locally. This is necessary to perform the familiar sort of comparative statics exercises to determine the effect of parameter changes on equilibrium values. It is well known that the perfect foresight competitive equilibria of dynamic general equilibrium models need not possess this property. There are a number of examples in the literature showing overlapping generations economies with a continuum of equilibria. Recent work by Kehoe and Levine (l983b) shows that in stationary overlapping generations exchange economies the dimension of indeterminacy is limited only by the number of goods in each period. Muller and Woodford (l983b) have extended their results to stationary overlapping generations economies with production and infinitelived agents.

These results have serious implications for the type of models that should be used in policy questions, but they may seem inaccessible because of the technical nature of the aforementioned papers. Accordingly, the present paper attempts to remedy this.

About the Publisher

Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com

This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

Details zur Ausgabe

• Verlag: Forgotten Books
• Erscheinungsdatum: 2018
• Sprache: Englisch
• ISBN 10: 1330689712
• ISBN 13: 9781330689714
• Einband: Tapa blanda
• Anzahl der Seiten: 44
• Kontakt zum Hersteller: Nicht verfügbar
• Verantwortliche Person: Nicht verfügbar