Monotone methods for Markovian equilibrium in dynamic economies

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

Research output: Contribution to journalReview articlepeer-review

5 Scopus citations

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

ASJC Scopus subject areas

  • General Decision Sciences
  • Management Science and Operations Research

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