Elinor Ostrom is known for her defense of polycentric systems of governance and her critique of centralized, one-size-fits-all solutions. Ostrom argues throughout her oeuvre that agents on the ground are better situated to identify and develop solutions to a wide variety of collective action...

We introduce a methodology for analysing infinite horizon economies with two agents, one good, and incomplete markets. We provide an example in which an agent's equilibrium consumption is zero eventually with probability one even if she has correct beliefs and is marginally more patient. We then...