Skip to main content
SpringerLink
Log in

The Social Viability of Money

Competitive Equilibria and the Core of Overlapping Generations Economies

  • Book
  • © 1991

Overview

Authors:
  1. Joan Esteban

    1. Institut d’Anàlisi Econòmica, CSIC, Universitat Autònoma de Barcelona, Bellaterra, Barcelona, Spain

    View author publications

    You can also search for this author in PubMed   Google Scholar

Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 372)

This is a preview of subscription content, log in via an institution to check access.

Access this book

Log in via an institution
eBook USD 39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Other ways to access

Licence this eBook for your library

Institutional subscriptions

Table of contents (7 chapters)

  1. Front Matter

    Pages I-X
    Download chapter PDF

  2. Introduction

    1. Front Matter

      Pages 1-1
      Download chapter PDF

    2. The Viability of Fiat Money

      • Joan Esteban
      Pages 3-24

  3. The Overlapping Generations Model of an Exchange Economy

    1. Front Matter

      Pages 25-28
      Download chapter PDF

    2. Dynamic Efficiency

      • Joan Esteban
      Pages 29-52

    3. Competitive Equilibria in a Barter. Overlapping Generations Economy

      • Joan Esteban
      Pages 53-76

    4. Monetary Equilibria

      • Joan Esteban
      Pages 77-102

  4. The Core in Overlapping Generations Economies

    1. Front Matter

      Pages 103-103
      Download chapter PDF

    2. A Characterization of the Core

      • Joan Esteban
      Pages 105-130

    3. Competitive Equilibria and the Core. One agent per generation

      • Joan Esteban
      Pages 131-160

    4. Competitive Equilibria and the Core. Many agents per generation

      • Joan Esteban
      Pages 161-193

  5. Back Matter

    Pages 195-206
    Download chapter PDF
Back to top

Keywords

About this book

In this book overlapping generations economies are analysed from a game theoretical point of view and the social acceptability of consumption allocations is studied in infinite horizon models of pure exchange economieswith agents with finite lifetimes who behave cooperatively. The core of such economies and its relation with competitive equilibria, both walrasian and monetary and the essential characteristics of the overlapping generations model are examined. The author defines the problem of trust in intertemporal consumption allocations as a question of belonging or not to the core of economy and provides a full characterization of the core allocations for n-goods pure exchange economies with one agent per generation: a consumption allocation belongs to the core if and only it is Pareto optimal and Sequentially Individually Rational. From this it follows that for one commodity economies no consumption allocation involving intertemporal transfers can belong to the core of the economy. In other words, no monetary equilibrium is socially viable. This result is no longer true for many goods models. For that case it is demonstrated that there exist bounds on the real value of equilibrium money purchases beyond which monetary equilibria are not socially viableand with many agents in every generation it is shown that as the economy becomes large and monetary (as well as IOU) equilibria become eventually excluded from the core of the economy. These results provide an analytical rationale for the fact that in most countries fiat money is legal tender.

Authors and Affiliations

  • Institut d’Anàlisi Econòmica, CSIC, Universitat Autònoma de Barcelona, Bellaterra, Barcelona, Spain

    Joan Esteban

Bibliographic Information

  • Book Title: The Social Viability of Money

  • Book Subtitle: Competitive Equilibria and the Core of Overlapping Generations Economies

  • Authors: Joan Esteban

  • Series Title: Lecture Notes in Economics and Mathematical Systems

  • DOI: https://doi.org/10.1007/978-3-642-46755-4

  • Publisher: Springer Berlin, Heidelberg

  • eBook Packages: Springer Book Archive

  • Copyright Information: Springer-Verlag Berlin Heidelberg 1991

  • Softcover ISBN: 978-3-540-54649-8Published: 11 December 1991

  • eBook ISBN: 978-3-642-46755-4Published: 06 December 2012

  • Series ISSN: 0075-8442

  • Series E-ISSN: 2196-9957

  • Edition Number: 1

  • Number of Pages: X, 202

  • Topics: Economic Theory/Quantitative Economics/Mathematical Methods

Publish with us

Policies and ethics

Back to top

Search

Navigation