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

In contrast to Mandler’s (1999a; Theorem 6) generic determinacy of steady-state equilibria, we first show that any non-trivial steady-state equilibrium is indeterminate under a general overlapping generation economy with a fixed Leontief technique. We also check that this indeterminacy is generic. These results are obtained by explicitly introducing a general model of every generation’s utility function and individual optimization program to the overlapping generation economy, which also verifies that Mandler’s (1999a; section 6) claim on generic determinacy is invalid. We also argue the distinctiveness of our results in comparison with the standard literature, like Calvo (1978), of overlapping generation indeterminacy.