TY - JOUR
T1 - The dynamics of efficient intertemporal allocations with many agents, recursive preferences, and production
AU - Benhabib, Jess
AU - Jafarey, Saqib
AU - Nishimura, Kazuo
N1 - Funding Information:
* We would like to thank the C. V. Starr Center for Applied Economics for technical support. Jess Benhabib’s research was supported in part by the National Science Foundation under Grant SES 8308225. We also thank Larry Epstein for giving useful comments. t Present address at Department of Economics, SUNY at Buffalo, Buffalo, N.Y. 14260.
PY - 1988/4
Y1 - 1988/4
N2 - The local dynamics of efficient allocations are studied for heterogeneous-agent economies with production where preferences are recursive but not time-separable. In the case of a one-sector neoclassical technology, it is shown that optimal trajectories locally converge to a unique steady state, provided that every agent's utility satisfies normality and increasing marginal impatience conditions. In the two-sector case, with the above restrictions on preferences, it is shown that oscillations can result only if the consumption goods sector is sufficiently capital intensive.
AB - The local dynamics of efficient allocations are studied for heterogeneous-agent economies with production where preferences are recursive but not time-separable. In the case of a one-sector neoclassical technology, it is shown that optimal trajectories locally converge to a unique steady state, provided that every agent's utility satisfies normality and increasing marginal impatience conditions. In the two-sector case, with the above restrictions on preferences, it is shown that oscillations can result only if the consumption goods sector is sufficiently capital intensive.
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U2 - 10.1016/0022-0531(88)90006-3
DO - 10.1016/0022-0531(88)90006-3
M3 - Article
AN - SCOPUS:38249027515
SN - 0022-0531
VL - 44
SP - 301
EP - 320
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 2
ER -