This paper surveys some recent developments in the literature which studies continuous-timeevolutionary dynamics in the context of economic modeling.

Models of product differentiation try to provide answers to the question which good will be provided in an imperfectly competitive market and how it will be priced. In such models consumers have been modeled as buying one unit of one good in the market. I construct counterparts to frequently...

The stationary sunspot equilibria of a simple OLG economy with heterogeneous agents areconsidered. These equilibria are known to be suboptimal. The focus of the paper is on the efficacy,based on welfare economic considerations and informational requirements, of government policy insuch an...

We consider general OLG economies under uncertainty, with dividend paying assets of infinite maturity and money, and in which one good is available for consumption. We study the optimality properties of equilibria when asset markets are allowed to be sequentially incomplete. We show that if...

We consider pure exchange, one good OLG economies under stationary Markov uncertainty. It is known that when markets are sequentially complete, a stationary equilibrium at which the agents common matrix of intertemporal rates of substitution has a Perron root which is less than or equal to one...

We consider an infinite horizon economy with incomplete markets with two agents and one good. We begin with 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 prove the following...

The rise in consumption inequality in response to the increase in income inequality over the last three decades in the U.S. is puzzling to expected-utility-based incomplete market models. The two-sided lack of commitment models exhibit too little consumption inequality while the standard...

This paper investigates the implications of major ¯nancial markets crises for the human capital accumulation decisions of households. We use data for Argentinean households over the period 1995-2002 to examine households' response to negative idiosyncratic income shocks in di®erent...

In the early stages of the process of industry evolution, firms are financially constrained and pay different wages because workers have heterogeneous expectations about the prospects for advancement offered by each firm's job ladder. This paper argues that, nevertheless, if the output market is...