On efficiency and local uniqueness in two-sector OLG economies

Jean-Pierre Drugeon (), Carine Nourry and Alain Venditti
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Jean-Pierre Drugeon: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

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Abstract: We consider a two-sector overlapping generations model with homothetic preferences. Under standard conditions on technologies, upon large enough values for the share of first period consumption over the wage income, we prove that dynamic efficiency and local uniqueness of the competitive equilibrium hold. On the contrary, for lower values of the share of first period consumption over the wage income which imply dynamic inefficiency of the steady state, local indeterminacy arises without requiring strong restrictions on the sectoral elasticities of capital-labor substitution.

Keywords: Two-sector OLG model; efficiency; local uniqueness (search for similar items in EconPapers)
Date: 2009
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Related works:
Journal Article: On efficiency and local uniqueness in two-sector OLG economies (2010)
Working Paper: On Efficiency and Local Uniqueness in Two-Sector OLG Economies (2010)
Working Paper: On Efficiency and Local Uniqueness in Two-Sector OLG Economies (2010)
Working Paper: On efficiency and local uniqueness in two-sector OLG economies (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00439241

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