Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/86043
Authors: 
Morand, Olivier F.
Reffett, Kevin L.
Year of Publication: 
2002
Series/Report no.: 
Tinbergen Institute Discussion Paper 02-085/2
Abstract: 
In applied work in macroeconomics and finance, nonoptimal infinite horizon economies are often studied in which the state-space is unbounded. Important examples of such economies are single-sector growth models with production externalities, valued fiat money, monopolistic competition, and/or distortionary government taxation. Although sufficient conditions for existence and uniqueness of Markovian equilibrium are weIl known for the compact state space case, no similar sufficient conditions exist for unbounded growth. This paper provides such a set of sufficient conditions, and presents a computational algorithm that will prove asymptotically consistent when computing Markovian equilibrium.
Subjects: 
Equilibrium
Dynamic Models
Unbounded
Nonoptimal
JEL: 
C62
D58
D62
Document Type: 
Working Paper

Files in This Item:
File
Size
282.31 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.