Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2002-09-04
Number: 02-086/2
Author-Name: Manjira Datta
Author-Workplace-Name: Arizona State University
Author-Name: Leonard J. Mirman
Author-Workplace-Name: University of Virginia
Author-Name: Olivier F. Morand
Author-Workplace-Name: University of Connecticut
Author-Name: Kevin L. Reffett
Author-Email: kevin.reffett@asu.edu
Author-Workplace-Name: Arizona State University
Title: Monotone Methods for Markovian Equilibrium in Dynamic Economies
Abstract: In this paper, we provide an overview of an emerging class of "monotone map methods" in analyzing distorted equilibrium in dynamic economies. In particular, we focus on proving the existence and characterization of competitive equilibrium in non-optimal versions of the optimal growth models. We suggest two alternative methods: an Euler equation method for a smooth, strongly concave environment, and a value function method for a non-smooth supermodular environment. We are able to extend this analysis to study models that allow for unbounded growth or a labor-leisure choice.
File-Url: https://papers.tinbergen.nl/02086.pdf
File-Format: application/pdf
File-Size: 289744 bytes
Handle: RePEc:tin:wpaper:20020086