Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5098721 | Journal of Economic Dynamics and Control | 2013 | 21 Pages |
Abstract
We provide sufficient conditions for existence and uniqueness of a monotone, Lipschitz continuous Markov stationary Nash equilibrium (MSNE) and characterize its associated Stationary Markov equilibrium in a class of intergenerational paternalistic altruism models with stochastic production. Our methods are constructive, and emphasize both order-theoretic and geometrical properties of nonlinear fixed point operators, and relate our results to the construction of globally stable numerical schemes that construct approximate Markov equilibrium in our models. Our results provide a new catalog of tools for the rigorous analysis of MSNE on minimal state spaces for OLG economies with stochastic production and limited commitment.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Åukasz Balbus, Kevin Reffett, Åukasz Woźny,