# 99-080/2 (1999-10-08)

Manjira Datta, Arizona State University; Leonard J. Mirman, University of Virginia; Kevin L. Reffett, Arizona State University

In this paper, we provide a set of sufficient conditions under whichrecursive competitive equilibrium exist and are unique for a largeclass of distorted dynamic equilibrium models with capital and elastic laborsupply. We develop a monotone map approach to the problem. The class ofeconomies for which we are able to obtain our existence result is apparentlyconsiderably larger than those considered in previous work.Additionally unlike previous work, we are able to also prove that this equilibriumis unique. We conclude by applying the new results to some importantexamples of monetary economies often used in applied work.