Skip to main content
SpringerLink
Log in

On the equivalence between the overlapping-generations model and cyclical general-equilibrium models

  • Articles
  • Published:
Journal of Economics Aims and scope Submit manuscript

Abstract

We show that equilibrium cycles in an overlapping-generations model are equivalent to asymmetric equilibria in a general-equilibrium model. We use this equivalence to find equilibrium cycles in the overlapping-generations model with two and three generations, respectively. For the example with two generations we show that for certain parameter values cycles of all periods occur.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Bala, V. (1997): “A Pitchfork Bifurcation in the Tatonnement Process.”Economic Theory 10: 521–530.

    Google Scholar 

  • Balasko, Y., and Ghiglino, C. (1995): “On the Existence of Endogenous Cycles.”Journal of Economic Theory 67: 566–577.

    Google Scholar 

  • Benhabib, J., and Day, R. H. (1982): “A Characterization of Erratic Dynamics in the Overlapping Generations Model.”Journal of Economic Dynamics and Control 4: 37–55.

    Google Scholar 

  • Devaney, R. L. (1989):An Introduction to Chaotic Dynamical Systems. Redwood City: Addison-Wesley.

    Google Scholar 

  • Dierker, E. (1972): “Two Remarks on the Number of Equilibria of an Economy.”Econometrica 40: 951–953.

    Google Scholar 

  • Gale, D. (1973): “Pure Exchange Equilibrium of Dynamic Economic Models.”Journal of Economic Theory 6: 12–36.

    Google Scholar 

  • Grandmont, J. M. (1985): “On Endogenous Competitive Business Cycles.”Econometrica 53: 995–1045.

    Google Scholar 

  • Khibnik, A. I., Kuznetsov, Yu. A., Levitin, V. V., and Nikolaev, E. V. (1992):Interactive LOCal BIFurcation Analyzer: LOCBIF, version 2, Software Package, CAN Expertise Center, Amsterdam.

    Google Scholar 

  • Reichlin, P. (1986): “Equilibrium Cycles in an Overlapping Generations Economy with Production.”Journal of Economic Theory 40: 89–102.

    Google Scholar 

  • Samuelson, P. A. (1958): “An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money.”Journal of Political Economy 66: 467–482.

    Google Scholar 

  • Tuinstra, J. (1997): “A Price Adjustment Process with Symmetry.”Economics Letters 57: 297–303.

    Google Scholar 

Download references

Author information

Author notes

  1. Jan Tuinstra & Claus Weddepohl

    Present address: Department of Econometrics, Faculty of Economics and Econometrics, University of Amsterdam, Roeterstraat 11, 1018 WB, Amsterdam, The Netherlands

Authors and Affiliations

    Authors
    1. Jan Tuinstra
      View author publications

      You can also search for this author in PubMed Google Scholar

    2. Claus Weddepohl
      View author publications

      You can also search for this author in PubMed Google Scholar

    Rights and permissions

    Reprints and permissions

    About this article

    Cite this article

    Tuinstra, J., Weddepohl, C. On the equivalence between the overlapping-generations model and cyclical general-equilibrium models. Journal of Economics Zeitschrift für Nationalökonomie 70, 187–207 (1999). https://doi.org/10.1007/BF01224768

    Download citation

    • Received:

    • Revised:

    • Issue Date:

    • DOI: https://doi.org/10.1007/BF01224768

    Keywords

    JEL classification

    Search

    Navigation