EQUILIBRIUM FOR OVERLAPPING GENERATIONS IN CONTINUOUS-TIME

We prove the existence of general equilibrium for continuous-time over lapping-generations models. Previous theorems exclude all non-linear C .E.S, and von Neumann- Morgenstern preferences and exclude production. Our primitive assumptions are satisfied by such preferences and by al l Markovian production technologies satisfying Bewley's assumptions fo r Arrow-Debreu models provided that storage is possible, at some finit e rate of depreciation and some positive capacity. A non-existence exa mple shows our Markovian and storage assumptions cannot be dropped. (C ) 1996 Academic Press, Inc.