TE-Revision-Final-2021-06-29.pdf (295.32 kB)
Markov distributional equilibrium dynamics in games with complementarities and no aggregate risk
journal contribution
posted on 2023-06-10, 00:19 authored by Lukas Balbus, Pawel DziewulskiPawel Dziewulski, Kevin Reffett, Lukasz WoznyWe 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.
History
Publication status
- Published
File Version
- Accepted version
Journal
Theoretical EconomicsISSN
1933-6837Publisher
Econometric SocietyPage range
1-49Department affiliated with
- Economics Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2021-07-09First Open Access (FOA) Date
2021-07-09First Compliant Deposit (FCD) Date
2021-07-09Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC