Uniqueness of Markov equilibrium in stochastic OLG models with nonclassical production

- We study Markov Equilibria (ME) in stochastic OLG models with nonclassical production.
- We provide sufficient conditions under which an ME exists and is unique.
- Restrictions either on the production or the consumption side suffice for uniqueness.
- A unique ME is also the unique sequential equilibrium of the economy.

A large class of stochastic OLG economies with nonclassical production is shown to possess a unique Markov Equilibrium (ME) which is also the unique sequential equilibrium. Additional properties such as monotonicity, continuity, and smoothness of the ME are also discussed.