Location of Repository

Rational Expectations Equilibria in Dynamic Economies with Interacting Agents

By Alberto Bisin, Ulrich Horst and Onur Özgür

Abstract

We consider general economies in which rational agents interact locally. The local aspect of the interactions is designed to capture in a simple abstract way social interactions, that is, socio-economic environments in which markets do not mediate all of agents ’ choices, and each agent’s choice might be in part determined, for instance, by family, peer group, or ethnic group effects. We study static as well as dynamic infinite horizon economies; we allow for economies with incomplete information, and we consider jointly global and local interactions, to integrate e.g., markets and global externalities with peer and group effects. We provide conditions under which such economies have equilibria with rational expectations which depend in a Lipschitz continuous manner on the parameters

Topics: rational expectations, local interactions, existence of equilibria Preliminary, Comments Welcome
Year: 2002
OAI identifier: oai:CiteSeerX.psu:10.1.1.196.5197
Provided by: CiteSeerX
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • http://citeseerx.ist.psu.edu/v... (external link)
  • http://www.bwl.uni-kiel.de/vwl... (external link)
  • Suggested articles


    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.