Existence and uniqueness of equilibrium in distorted dynamic economies with capital and labor

Manjira Datta, Leonard J. Mirman, Kevin Reffett

Research output: Contribution to journalArticlepeer-review

35 Scopus citations

Abstract

In this paper, we provide a set of sufficient conditions under which recursive competitive equilibrium exists and is unique for a large class of distorted dynamic equilibrium models with capital and elastic labor supply. We develop a lattice based approach to the problem. The class of economies for which we are able to obtain our existence and uniqueness result is considerably larger than those considered in previous work. We conclude by applying the new results to some important examples of monetary economies often used in applied work. Journal of Economic Literature Classification Numbers: C62, D51, D90, E10.

Original languageEnglish (US)
Pages (from-to)377-410
Number of pages34
JournalJournal of Economic Theory
Volume103
Issue number2
DOIs
StatePublished - 2002

Keywords

  • Distortion
  • Monotone operators
  • Recursive competitive equilibrium
  • Tarski's fixed point theorem

ASJC Scopus subject areas

  • Economics and Econometrics

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