We analyze an overlapping generations model where individuals’ well-being is negatively affected by the economy-wide average consumption level. Each individual aims at increasing his consumption level relative to that of the others.We show that this ‘positional competition’ can generate (local and global) indeterminacy and chaos
LOCAL AND GLOBAL INDETERMINACY IN AN OVERLAPPING GENERATIONS MODEL WITH CONSUMPTION EXTERNALITIES
SODINI, MAURO;
2010-01-01
Abstract
We analyze an overlapping generations model where individuals’ well-being is negatively affected by the economy-wide average consumption level. Each individual aims at increasing his consumption level relative to that of the others.We show that this ‘positional competition’ can generate (local and global) indeterminacy and chaosFile in questo prodotto:
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