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Optimal saving under Poisson uncertainty

Article Abstract:

Optimal saving and investment behavior of a household that can either invest in a riskless or a risky saving technology when risk results from a Poisson process was studied. The behavior of households in a general equilibrium setup was the particular focus of the study. The introduction of Poisson processes enabled a firm understanding of model endogenous cycles along with long-run growth. The results showed that an intuitive and tractable characterization of equilibrium is possible.

Usage, Poisson processes

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Stationary monetary equilibria in overlapping generations models with incomplete markets

Article Abstract:

The analysis of a stochastic overlapping generations model in relation to the stationary monetary equilibria shows the existence of such equilibria which vary depending on the presence and absence of outside or inside money. When inside money abounds, the equilibria is characterized by a continuum. The presence of outside money tends to locally isolate the equilibrial situation, which is usually characterized by a nonzero price.

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Core equivalence in an overlapping generations model

Article Abstract:

An analysis of core conditions set in an overlapping generations model is presented. The analysis focuses on 'short term core' and assumes certain economic bounds. Results show that such a core approximates that of Chae's short run core. In addition, Chae conditions adhere to a set of competitive equilibrium allocations in a special setting where a generation accepts only a particular agent type.

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