An overlapping generations model core equivalence theorem

Abstract

We show that in the overlapping generations model an allocation is a Walrasian equilibrium if and only if the allocation belongs to the short-term core of every replication of the OLG economy—and hence, we establish a core equivalence theorem for the overlapping generations model.

Additional Information

© 1990 Elsevier Inc. Received July 12, 1988; revised June 25. 1989. We thank D. J. Brown and an anonymous referee for their constructive comments on an earlier version of this paper. Research of both authors was supported in part by a Chrysler Corporation grant to IUPUI.

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