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Sraffian indeterminacy of steady-state equilibria in the Walrasian general equilibrium framework

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  • Yoshihara, Naoki
  • Kwak, Se Ho

Abstract

In contrast to Mandler’s (1999a; Theorem 6) generic determinacy of the steady-state equilibrium, we first show that any regular Sraffian steady-state equilibrium is indeterminate in terms of Sraffa (1960) under a simple overlapping generation economy with a fixed Leontief technique. We also check that this indeterminacy is generic. These results are obtained by explicitly introducing a simple model of every generation’s utility function and individual optimization program to the overlapping generation economy, which also explains the main source of the difference between our results and Mandler (1999a; section 6). We also argue the distinctiveness of our results in comparison with the standard literature, like Calvo (1978), of overlapping generations indeterminacy.

Suggested Citation

  • Yoshihara, Naoki & Kwak, Se Ho, 2022. "Sraffian indeterminacy of steady-state equilibria in the Walrasian general equilibrium framework," Discussion Paper Series 734, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:734
    Note: July 6, 2022
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    Cited by:

    1. Yoshihara, Naoki & Veneziani, Roberto, 2023. "The general equilibrium effects of localised technological progress: A Classical approach," Journal of Mathematical Economics, Elsevier, vol. 109(C).

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    More about this item

    Keywords

    Sraffian indeterminacy; factor income distribution; general equilibrium framework;
    All these keywords.

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General

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