The Strong Sequential Core in a Dynamic Exchange Economy

METEOR Working Paper No. RM/02/003

20 Pages Posted: 19 Feb 2002

See all articles by Arkadi Predtetchinski

Arkadi Predtetchinski

Maastricht University - Department of Economics

P. Jean-Jacques Herings

Tilburg University

Hans Peters

Maastricht University - Department of Quantitative Economics

Date Written: January 8, 2002

Abstract

Dynamic exchange economies with uncertainty are considered in which information is released over infinite time. The strong sequential core of such an economy consists of those consumption processes where no coalition of agents wishes to deviate at any moment for the rest of time. Comparable to the optimality principle in dynamic programming, necessary and sufficient conditions for non-emptiness of the strong sequential core in stationary economies are derived, based on non-emptiness of classical cores of certain static economies. The main result of the paper is an existence result for stationary economies based on the presence of a competitive equilibrium in an associated limit economy, given a high enough discount factor. Moreover, sufficient conditions are given under which the strong sequential core contains only time and history independent processes.

Keywords: core, stationary economies, uncertainty

JEL Classification: C71, C73, D51, D52

Suggested Citation

Predtetchinski, Arkadi and Herings, P. Jean-Jacques and Peters, Hans JM, The Strong Sequential Core in a Dynamic Exchange Economy (January 8, 2002). METEOR Working Paper No. RM/02/003, Available at SSRN: https://ssrn.com/abstract=299362 or http://dx.doi.org/10.2139/ssrn.299362

Arkadi Predtetchinski

Maastricht University - Department of Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31-43-3883636 (Phone)
+31-43-3884878 (Fax)

P. Jean-Jacques Herings (Contact Author)

Tilburg University ( email )

Department of Econometrics and Operations Research
P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 4668797 (Phone)
5000 LE (Fax)

HOME PAGE: http://https://sites.google.com/view/jean-jacques-herings/home

Hans JM Peters

Maastricht University - Department of Quantitative Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31-43-3883834 (Phone)
+31-43-3884874 (Fax)

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

Paper statistics

Downloads
60
Abstract Views
966
Rank
643,430
PlumX Metrics