Green, Edward J.; Zhou, Ruilin - In: Journal of Monetary Economics 57 (2010) 2, pp. 121-131
In a random-matching economy of traders who maximize cumulative consumption (overtaking criterion), the stationary, Markov, Bayesian-perfect equilibrium is studied. At such equilibrium, two results hold: (1) perfect substitutability between current and future consumption implies a no-surplus...