In this paper, we consider the problem of finding long-term equilibria in models of overlapping generations with a large number of periods. It is often possible to reduce
the solution of a model to finding the roots of a system of equations. Some OLG models, after
the introduction of additional variables, can be reduced to the form of a system of polynomials. Thus, one can represent the set of long-term equilibria as algebraic
diversity. This makes it possible to use computational methods from algebraic geometry in economic problems. In particular, the method using Grebner bases has become popular. However, this approach can be effectively applied only
when there are few variables. We propose an algorithm for finding solutions to the system and use it to investigate the presence of a plurality of solutions in realistically calibrated
models with long-lived agents.

Full document

The PDF file did not load properly or your web browser does not support viewing PDF files. Download directly to your device: Download PDF document
Back to Top

Document information

Published on 06/10/23
Submitted on 28/09/23

Licence: CC BY-NC-SA license

Document Score


Views 0
Recommendations 0

Share this document

claim authorship

Are you one of the authors of this document?