TY - JOUR

T1 - On the structure of the equilibrium price set of overlapping-generations economies

AU - Santos, Manuel S.

AU - Bona, Jerry L.

N1 - Funding Information:
*We are grateful to Tim Kehoe and Michel Lebreton for helpful conversations. Special thanks are owed to Andreu Mas-Colell for his suggestions with regard to an earlier draft. This research was supported in part by the Comision Asesora de Investigaci& Cientitica y T&mica (CAICYT, Spain) under Grant no. 2361 and in part by the National Science Foundation (U.S.A.). The present version has benefited from the commentary of two anonymous referees and an associate editor.
Copyright:
Copyright 2014 Elsevier B.V., All rights reserved.

PY - 1989

Y1 - 1989

N2 - This paper is concerned with generic properties of the set of price equilibria of overlapping-generations economies that include money. It is shown (in a C1 topology) that if generations live for m periods and if there are n goods available in each period, then most economies will feature equilibrium price sets of dimension at most (m-1)n. It is likewise shown that for every k that ranges between 0 and (m-1)n there are open sets of economies which possess locally k-dimensional, C1 manifolds of equilibria. In the process of establishing these facts, a transversality theorem is proved which applies to maps, not necessarily Fredholm, between open subsets of non-separable, infinite-dimensional spaces.

AB - This paper is concerned with generic properties of the set of price equilibria of overlapping-generations economies that include money. It is shown (in a C1 topology) that if generations live for m periods and if there are n goods available in each period, then most economies will feature equilibrium price sets of dimension at most (m-1)n. It is likewise shown that for every k that ranges between 0 and (m-1)n there are open sets of economies which possess locally k-dimensional, C1 manifolds of equilibria. In the process of establishing these facts, a transversality theorem is proved which applies to maps, not necessarily Fredholm, between open subsets of non-separable, infinite-dimensional spaces.

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U2 - 10.1016/0304-4068(89)90022-0

DO - 10.1016/0304-4068(89)90022-0

M3 - Article

AN - SCOPUS:38249024986

VL - 18

SP - 209

EP - 230

JO - Journal of Mathematical Economics

JF - Journal of Mathematical Economics

SN - 0304-4068

IS - 3

ER -