Monotone methods for Markovian equilibrium in dynamic economies

Manjira Datta, Leonard J. Mirman, Olivier F. Morand, Kevin Reffett

Research output: Contribution to journalArticle

5 Citations (Scopus)

Abstract

In this paper, we provide an overview of an emerging class of "monotone map methods" in analyzing distorted equilibrium in dynamic economics. In particular, we focus on proving the existence and characterization of competitive equilibrium in non-optimal versions of the optimal growth models. We suggest two alternative methods: an Euler equation method for a smooth, strongly concave environment, and a value function method for a non-smooth supermodular environment. We are able to extend this analysis to study models that allow for unbounded growth or a labor-leisure choice.

Original languageEnglish (US)
Pages (from-to)117-144
Number of pages28
JournalAnnals of Operations Research
Volume114
Issue number1-4
DOIs
StatePublished - 2002

Fingerprint

Optimal growth
Labor
Economic dynamics
Competitive equilibrium
Euler equations
Growth model
Value function
Leisure

ASJC Scopus subject areas

  • Management Science and Operations Research
  • Decision Sciences(all)

Cite this

Monotone methods for Markovian equilibrium in dynamic economies. / Datta, Manjira; Mirman, Leonard J.; Morand, Olivier F.; Reffett, Kevin.

In: Annals of Operations Research, Vol. 114, No. 1-4, 2002, p. 117-144.

Research output: Contribution to journalArticle

Datta, Manjira ; Mirman, Leonard J. ; Morand, Olivier F. ; Reffett, Kevin. / Monotone methods for Markovian equilibrium in dynamic economies. In: Annals of Operations Research. 2002 ; Vol. 114, No. 1-4. pp. 117-144.
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