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Intergenerational Bargaining and Indeterminacy of Equilibria

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  • Edgar A. Ghossoub

    (University of Texas at San Antonio)

Abstract

Most studies that use an overlapping generations setting assume complete depreciation of capital or complete reversibility with partial depreciation. These assumptions are generally made to make the analysis more tractable. Departing from a simple version of the Diamond (1965) model, I demonstrate that relaxing these assumptions generates multiplicity of equilibria - an issue that should be treated seriously in models that examine policy implications in overlapping generations production economies.

Suggested Citation

  • Edgar A. Ghossoub, 2010. "Intergenerational Bargaining and Indeterminacy of Equilibria," Working Papers 0010, College of Business, University of Texas at San Antonio.
    • Handle: RePEc:tsa:wpaper:0036eco
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    References listed on IDEAS

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    1. Robert G. King & Ross Levine, 1993. "Finance and Growth: Schumpeter Might Be Right," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 717-737.
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    More about this item

    Keywords

    Economic Development; Intergenerational Trade; Bargaining;
    All these keywords.

    JEL classification:

    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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