Time and Uncertainty in Overlapping Generations Economies

Posted: 15 Oct 2001

See all articles by Julio Davila

Julio Davila

Nazarbayev University; Center of National Scientific Research

Abstract

This paper shows the general reversibility of every perfect foresight equilibrium of an overlapping generations economy. It then shows and characterizes the existence of reversible sunspot equilibria in these economies as well, which seems to be at odds with our intuition about the irreversibility of a tree of events. Although the paper establishes also that such reversible stochastic equilibria constitute a negligible subset of all the equilibria of their class, their mere existence may be considered somewhat puzzling for this intuition.

Keywords: Overlapping generations, sunspots, time reversibility

JEL Classification: D50, D80, D90

Suggested Citation

Davila, Julio, Time and Uncertainty in Overlapping Generations Economies. Available at SSRN: https://ssrn.com/abstract=275173

Julio Davila (Contact Author)

Nazarbayev University ( email )

53 Kabanbay Batyra Avenue
Astana, 010000
Kazakhstan

Center of National Scientific Research

3, rue Michel-Ange
106-112 Boulevard de l'Hopital
Paris cedex 16, 75794
France

Do you have negative results from your research you’d like to share?

Paper statistics

Abstract Views
798
PlumX Metrics