Sraffian Indeterminacy in General Equilibrium Revisited

Authors

Naoki Yoshihara, Department of Economics, University of Massachusetts, AmherstFollow
Se Ho Kwak, Department of Economics, University of Massachusetts Amherst

Working Paper Number

2019-04

Publication Date

2019

Abstract

In contrast to Mandler’s (1999a; Theorem 6) impossibility result about the Sraffian indeterminacy of the steady-state equilibrium, we first show that any regular Sraffian steady-state equilibrium is indeterminate in terms of Sraffa (1960) under the simple overlapping generation economy. Moreover, we also check that this indeterminacy is generic. These results are obtained by explicitly defining a simple model of overlapping generation economies with Leontief production techniques, in which we also explain the main source of the difference between our results and Mandler (1999a; section 6).

DOI

https://doi.org/10.7275/14301384

License

UMass Amherst Open Access Policy

Recommended Citation

Yoshihara, Naoki and Kwak, Se Ho, "Sraffian Indeterminacy in General Equilibrium Revisited" (2019). UMass Amherst Economics Working Papers. 262.
https://doi.org/10.7275/14301384