PRICE EQUILIBRIUM FOR INFINITE HORIZON ECONOMIC MODELS
Abstract
The paper analyzes one-sector models of general equilibrium over an infinite time horizon in which there are an infinite number of agents, these being the members of successive generations. Three aspects of these models are non-optimalities in the form of productive inefficiency, and comsumption non- optimality due to 'inflationary' equilibria, the role of 'credit and its effect on the equilibrium is discussed and it is shown that for simple exchange models steady state equilibria are possible with a permanent imbalance of trade in which one country constantly exports to the other, a phenomenon which cannot occur in the classical model.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 1969
- Accession Number
- AD0694459
Entities
People
- David Gale
Organizations
- University of California, Berkeley