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.