PDF iconDownload This Paper
Open PDF in Browser
Add Paper to My Library
Permalink
Using these links will ensure access to this page indefinitely
Copy URL
Copy DOI

Implementation in Stationary Markov-Perfect Equilibrium

30 Pages Posted: 16 Apr 2024

See all articles by Takashi Hayashi

Takashi Hayashi

University of Glasgow - Adam Smith Business School

Michele Lombardi

University of Liverpool - Management School (ULMS); University of Napoli Federico II

Date Written: April 11, 2024

Abstract

This paper studies the implementation of society's policy functions in stationary Markov-perfect equilibrium. We identify a monotonicity condition, a natural but nontrivial stationary recursive extension of Maskin monotonicity. We also show that our condition is sufficient under a mild regularity condition when there are three or more agents. We apply our result to a market solution for intertemporal trades and the recursive median voter solution for public capital accumulation.

Keywords: Implementation, Stationary Markov Perfect-Equilibrium, Partial Commitment

JEL Classification: C79, D82

Suggested Citation

Hayashi, Takashi and Lombardi, Michele, Implementation in Stationary Markov-Perfect Equilibrium (April 11, 2024). Available at SSRN: https://ssrn.com/abstract=4791919 or http://dx.doi.org/10.2139/ssrn.4791919

Takashi Hayashi

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom

Michele Lombardi (Contact Author)

University of Liverpool - Management School (ULMS) ( email )

Chatham Street
LIVERPOOL, L69 7ZH

University of Napoli Federico II ( email )

via Cintia Monte Sant'Angelo
Napoli
Italy

PDF iconDownload This Paper
Open PDF in Browser

Do you have a job opening that you would like to promote on SSRN?

Place Job Opening

Paper statistics

Downloads
120
Abstract Views
521
Rank
478,068
22 References
PlumX Metrics

Related eJournals