Active Intermediation In A Monetary Overlapping Generations Economy

Thumbnail Image
Date
1995-02-01
Authors
Pingle, Mark
Major Professor
Advisor
Committee Member
Journal Title
Journal ISSN
Volume Title
Publisher
Authors
Person
Tesfatsion, Leigh
Professor Emeritus
Research Projects
Organizational Units
Organizational Unit
Economics

The Department of Economic Science was founded in 1898 to teach economic theory as a truth of industrial life, and was very much concerned with applying economics to business and industry, particularly agriculture. Between 1910 and 1967 it showed the growing influence of other social studies, such as sociology, history, and political science. Today it encompasses the majors of Agricultural Business (preparing for agricultural finance and management), Business Economics, and Economics (for advanced studies in business or economics or for careers in financing, management, insurance, etc).

History
The Department of Economic Science was founded in 1898 under the Division of Industrial Science (later College of Liberal Arts and Sciences); it became co-directed by the Division of Agriculture in 1919. In 1910 it became the Department of Economics and Political Science. In 1913 it became the Department of Applied Economics and Social Science; in 1924 it became the Department of Economics, History, and Sociology; in 1931 it became the Department of Economics and Sociology. In 1967 it became the Department of Economics, and in 2007 it became co-directed by the Colleges of Agriculture and Life Sciences, Liberal Arts and Sciences, and Business.

Dates of Existence
1898–present

Historical Names

  • Department of Economic Science (1898–1910)
  • Department of Economics and Political Science (1910-1913)
  • Department of Applied Economics and Social Science (1913–1924)
  • Department of Economics, History and Sociology (1924–1931)
  • Department of Economics and Sociology (1931–1967)

Related Units

Journal Issue
Is Version Of
Versions
Series
Department
Abstract

In Pingle and Tesfatsion (1991) we question whether the conventional definition of a competitive equilibrium, as applied to an overlapping generations economy, is truly satisfactory. The conventional definition was developed for a standard Walrasian economy with a finite number of consumers and goods whereas the overlapping generations economy necessarily contains an infinite number of consumers and goods. As noted by Shell (1971), the presence of this double infinity in overlapping generations economies introduces a new trading opportunity: namely, the possibility of incurring and rolling over a debt forever as time proceeds into the infinite future. The problem with applying the conventional equilibrium definition to the overlapping generations economy is that it does not contain any conditions that recognize this new trading opportunity. Rather, private agents are assumed to focus narrowly on consumption and production opportunities, ignoring possible profit opportunities arising from debt issue and roll over.

Comments
Description
Keywords
Citation
DOI
Source
Copyright
Collections