Balbus, Lukas, Dziewulski, Pawel, Reffett, Kevin and Wozny, Lukasz (2021) Markov distributional equilibrium dynamics in games with complementarities and no aggregate risk. Theoretical Economics. pp. 1-49. ISSN 1933-6837

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Abstract

We present a new approach to studying equilibrium dynamics in a class of stochastic games with a continuum of players with private types and strategic complementarities. We introduce a suitable equilibrium concept, called Markov Stationary Nash Distributional Equilibrium (MSNDE), prove its existence, and determine comparative statics of equilibrium paths and the steady state invariant distributions to which they converge. Finally, we provide numerous applications of our results including: dynamic models of growth with status concerns, social distance, and paternalistic bequest with endogenous preference for consumption.

Item Type:	Article
Keywords:	large games, distributional equilibria, supermodular games, comparative dynamics, non-aggregative games, social interactions
Schools and Departments:	University of Sussex Business School > Economics
Related URLs:	Publisher
SWORD Depositor:	Mx Elements Account
Depositing User:	Mx Elements Account
Date Deposited:	09 Jul 2021 07:53
Last Modified:	09 Nov 2021 12:30
URI:	http://sro.sussex.ac.uk/id/eprint/100250

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