Overlapping generations models may have a continuum of equilibria. Previous studies have been largely confined to the local analysis that linearizes the model around the steady state. However, what is true of the linearized system only applies for an unknown-sized open neighborhood of the steady...

Overlapping generations models may have a continuum of equilibria. Previous studies have been largely confined to the local analysis that linearizes the model around the steady state. However, what is true of the linearized system only applies for an unknown-sized open neighborhood of the steady...

In this paper we explorer the computation and simulation of stochastic overlapping generation (OLG) models. To do so we compute all Markovian equilibria adopting a recently developed numerical algorithm. Among the models we studied, the inde- terminacy in deterministic OLG model results in many...