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arXiv · 2609.03730

Proof of Steady-State Multiplicity in Aiyagari

Kieran James Walsh
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Abstract

I provide the first analytic construction of a canonical Aiyagari economy exhibiting at least three steady states. Along the way, I provide new upper and lower bounds on the stationary capital supply for the case where the net return on saving is negative. I also give parameter restrictions that guarantee the existence of a steady state with a rental rate in the neighborhood of a remarkably simple number: the capital share times the depreciation rate.

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Kieran James Walsh. 2026-09-03. Proof of Steady-State Multiplicity in Aiyagari. https://arxiv.org/abs/2609.03730

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