Augeraud-Veron, E.; Augier, L. - In: Studies in Nonlinear Dynamics & Econometrics 5 (2007) 1, pp. 75-86
This paper considers a one-sector overlapping-generations model with production. We observe that under standard assumptions on preferences and technology, the perfect-foresight equilibrium violates positivity constraints for large sets of initial conditions. The consideration of the positivity...
