Brito, Paulo and Dilao, Rui
(2006):
*Equilibrium price dynamics in an overlapping-generations exchange economy.*

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## Abstract

We present a continuous time overlapping generations model for an endowment Arrow-Debreu economy with an age-structured population. For an economy with a balanced growth path, we prove that Arrow-Debreu equilibrium prices exist, and their dynamic properties are age-dependent. Our model allows for an explicit dependence of prices on critical age-specific endowment parameters. We show that, if endowments are distributed earlier than some critical age, then speculative bubbles for prices do exist.

Item Type: | MPRA Paper |
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Original Title: | Equilibrium price dynamics in an overlapping-generations exchange economy |

Language: | English |

Keywords: | Arrow-Debreu equilibrium; overlapping generations models; McKendrick model |

Subjects: | G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates D - Microeconomics > D5 - General Equilibrium and Disequilibrium > D51 - Exchange and Production Economies J - Labor and Demographic Economics > J1 - Demographic Economics > J10 - General |

Item ID: | 699 |

Depositing User: | Rui Dilao |

Date Deposited: | 08 Nov 2006 |

Last Modified: | 27 Sep 2019 17:25 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/699 |