# kaal:claim:6607458-021

**Claim.** A recursive equilibrium is a profile of generation functions and allocations satisfying individual optimality and model consistency simultaneously; it is recursive because the model-update operator feeds back into generation, allocation, and outputs, and the equilibrium is the fixed point of that recursion.

**Type.** definitional  **Support.** argued

**Source quote.**

> The equilibrium is recursive because Φ feeds back into G_i, which feeds back into a, which feeds back into outputs, which feed back into Φ. The equilibrium is the fixed point of this recursion.

**From.** Wulf A. Kaal, *Computative Economics A Framework for Economic Analysis under Computational Abundance* (2026), VI.A. Definition, page 16

**Cite as.** Wulf A. Kaal, Computative Economics A Framework for Economic Analysis under Computational Abundance (2026). SSRN: https://ssrn.com/abstract=6607458

**Verify.** sha256 of source PDF `75cca35350378eb8904866d068b5d2f3e1504629e6031457ce6c12152a88e3e8` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202026%20-%20Computative%20Economics%20A%20Framework%20for%20Economic%20Analysis%20under%20Computational%20Abundance.pdf

**Topics.** economics

**Keywords.** recursive-equilibrium, fixed-point, model-updating, generation-functions

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/6655138-018

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