Determinacy of equilibrium in an overlapping generations model with heterogeneous agents

We study the determinacy of perfect foresight equilibrium near a steady sta te in an overlapping generations model with production and both altruistic and non-altruistic agents having distinct utility functions. The proportion of each type of consumer is exogenously given. Our main results show that when there are positive stationary bequests, some standard assumptions on p references and technology rule out local indeterminacy for any positive val ue of the proportions. In the particular case of a separable utility functi on for altruistic agents, we prove that the determinacy property does not d epend on the size of the "infinite lived" dynasties. Journal of Economic Li terature Classification Numbers: C62, D91, O21, O41. (C) 2001 Academic Pres s.