On Non-Existence of Markov Equilibria in Competitive-Market Economies
ASU Economics Working Paper No. 14/2001
49 Pages Posted: 27 Jul 2001
Date Written: May 2001
This paper presents some examples of regular dynamic economies with externalities and taxes that either lack existence of a Markov equilibrium or such equilibrium is not continuous. These examples pose further challenges for the analysis and computation of these economies.
Keywords: competitive equilibrium, Markov equlibrium, externalities, taxes, money
JEL Classification: C10, C62
Suggested Citation: Suggested Citation