Abstract
This paper establishes a link between endowments, patience types, and the parameters of the HARA Bernoulli utility function that ensure equilibrium uniqueness in an economy with two goods and two impatience types with additive separable preferences. We provide sufficient conditions that guarantee uniqueness of equilibrium for any possible value of \(\gamma \) in the HARA utility function \(\frac{\gamma }{1-\gamma }\left( b+\frac{a}{\gamma }x\right) ^{1-\gamma }\). The analysis contributes to the literature on uniqueness in pure exchange economies with two-goods and two agent types and extends the result in Loi and Matta (2022).
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Andrea Loi was supported by INdAM. GNSAGA - Gruppo Nazionale per le Strutture Algebriche, Geometriche e le loro Applicazioni and by KASBA, funded by Regione Autonoma della Sardegna. Both authors were supported by STAGE, funded by Fondazione di Sardegna. We acknowledge financial support by PNRR e.INS Ecosystem of Innovation for Next Generation Sardinia (CUP F53C22000430001, codice MUR ECS00000038). We would like to express our gratitude to the two anonymous referees for their insightful comments and suggestions, which have greatly improved this manuscript.
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Loi, A., Matta, S. Endowments, patience types, and uniqueness in two-good HARA utility economies. Econ Theory Bull (2024). https://doi.org/10.1007/s40505-024-00269-7
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DOI: https://doi.org/10.1007/s40505-024-00269-7