Sraffian indeterminacy of steady‐state equilibria in the Walrasian general equilibrium framework

Abstract

AbstractIn contrast to Mandler's generic determinacy of steady‐state equilibria, we first show that any non‐trivial steady‐state equilibrium is indeterminate under a general overlapping generation (OLG) economy with a fixed Leontief technique. We also check that this indeterminacy is generic. These results are obtained by explicitly introducing a general model of every generation's utility function and individual optimization program to the OLG economy, which also verifies that Mandler's claim on generic determinacy is invalid. We also argue the distinctiveness of our results in comparison with the standard literature of OLG indeterminacy.