Abstract
We study general one good pure exchange stochastic overlapping generations economies with stationary Markovian uncertainty and a continuum of states for the Markov process. We show that a unit root property provides a complete characterization of the optimality properties of stationary equilibrium allocations when markets are sequentially complete and the welfare criterion is conditional Pareto optimality.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have