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 language | English (US) |
|---|---|
| Pages (from-to) | 377-410 |
| Number of pages | 34 |
| Journal | Journal of Economic Theory |
| Volume | 103 |
| Issue number | 2 |
| DOIs | |
| State | Published - 2002 |
Fingerprint
Keywords
- Distortion
- Monotone operators
- Recursive competitive equilibrium
- Tarski's fixed point theorem
ASJC Scopus subject areas
- Economics and Econometrics
Cite this
Existence and uniqueness of equilibrium in distorted dynamic economies with capital and labor. / Datta, Manjira; Mirman, Leonard J.; Reffett, Kevin.
In: Journal of Economic Theory, Vol. 103, No. 2, 2002, p. 377-410.Research output: Contribution to journal › Article
}
TY - JOUR
T1 - Existence and uniqueness of equilibrium in distorted dynamic economies with capital and labor
AU - Datta, Manjira
AU - Mirman, Leonard J.
AU - Reffett, Kevin
PY - 2002
Y1 - 2002
N2 - 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.
AB - 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.
KW - Distortion
KW - Monotone operators
KW - Recursive competitive equilibrium
KW - Tarski's fixed point theorem
UR - http://www.scopus.com/inward/record.url?scp=0036238871&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0036238871&partnerID=8YFLogxK
U2 - 10.1006/jeth.2000.2789
DO - 10.1006/jeth.2000.2789
M3 - Article
AN - SCOPUS:0036238871
VL - 103
SP - 377
EP - 410
JO - Journal of Economic Theory
JF - Journal of Economic Theory
SN - 0022-0531
IS - 2
ER -