The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Recursive Competitive Equilibrium

  • Rajnish Mehra
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2209

Abstract

In this article we define a recursive competitive equilibrium, provide an example and review the related literature.

Keywords

Arrow–Debreu model of general equilibrium Bellman’s principle of optimality Business cycles Dynamic decentralization Markov processes Neoclassical stochastic growth model Optimality Recursive competitive equilibrium Time-invariant equilibrium decision rules Total factor productivity Valuation equilibrium 
This is a preview of subscription content, log in to check access

Bibliography

  1. Bewley, T. 1972. Existence of equilibria in economies with infinitely many commodities. Journal of Economic Theory 4: 514–540.CrossRefGoogle Scholar
  2. Bizer, D., and K. Judd. 1989. Taxation and uncertainty. American Economic Review Papers and Proceedings 19: 331–336.Google Scholar
  3. Brock, W.A., and L.J. Mirman. 1972. Optimal economic growth and uncertainty: The discounted case. Journal of Economic Theory 4: 497–513.CrossRefGoogle Scholar
  4. Cass, D. 1965. Optimal growth in an aggregative model of capital accumulation. Review of Economic Studies 32: 233–240.CrossRefGoogle Scholar
  5. Coleman, W.J. 1991. Equilibrium in a production economy with an income tax. Econometrica 59: 1091–1104.CrossRefGoogle Scholar
  6. Coleman, W.J. 1996. Money and output: A test of reverse causation. American Economic Review 86: 90–111.Google Scholar
  7. Danthine, J.P., and J.B. Donaldson. 1990. Efficiency wages and the business cycle puzzle. European Economic Review 34: 1275–1301.CrossRefGoogle Scholar
  8. Donaldson, J.B., and R. Mehra. 1983. Stochastic growth with correlated production shock. Journal of Economic Theory 29: 282–312.CrossRefGoogle Scholar
  9. Donaldson, J.B., and R. Mehra. 1984. Comparative dynamics of an equilibrium intertemporal asset pricing model. Review of Economic Studies 51: 491–508.CrossRefGoogle Scholar
  10. Harris, M. 1987. Dynamic economic analysis. New York: Oxford University Press.Google Scholar
  11. Kydland, F.E., and E.C. Prescott. 1982. Time to build and aggregate fluctuations. Econometrica 50: 1345–1371.CrossRefGoogle Scholar
  12. Ljungqvist, L., and T.J. Sargent. 2004. Recursive macroeconomic theory. 2nd ed. Cambridge, MA: MIT Press.Google Scholar
  13. Long, J.B. Jr., and C.I. Plosser. 1983. Real business cycles. Journal of Political Economy 91: 39–69.CrossRefGoogle Scholar
  14. Lucas, R.E. Jr., and N. Stokey. 1987. Money and interest in a cash advance economy. Econometrica 55: 491–513.CrossRefGoogle Scholar
  15. Mehra, R. 1988. On the existence and representation of equilibrium in an economy with growth and non-stationary consumption. International Economic Review 29: 131–135.CrossRefGoogle Scholar
  16. Mehra, R., and E.C. Prescott. 1977. Recursive competitive equilibria and capital asset pricing. In Essays in financial economics, ed. R. Mehra. Doctoral dissertation, Carnegie Mellon University.Google Scholar
  17. Mehra, R., and E.C. Prescott. 1985. The equity premium: A puzzle. Journal of Monetary Economics 15: 145–162.CrossRefGoogle Scholar
  18. Prescott, E.C., and R.E. Lucas Jr. 1972. A note on price systems in infinite dimensional space. International Economic Review 13: 416–422.CrossRefGoogle Scholar
  19. Prescott, E.C., and R. Mehra. 1980. Recursive competitive equilibria: The case of homogeneous households. Econometrica 48: 1365–1379.CrossRefGoogle Scholar
  20. Stokey, N., R.E. Lucas, and E.C. Prescott. 1989. Recursive methods in economic dynamics. Cambridge, MA: Harvard University Press.Google Scholar

Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Rajnish Mehra
    • 1
  1. 1.