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Recursive Competitive Equilibrium: The Case of Homogeneous Households

by: Edward C. Prescott, Rajnish Mehra
Econometrica, Vol. 48, No. 6. (1980), pp. 1365-1379.

X Abstract

Recursive equilibrium theory is extended and generalized. Optimality of equilibria and supportability of optima are established in a direct way. Four economic applications are reformulated as recursive competitive equilibria and analyzed.

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