This paper analyses the mathematical properties of an economic growth model with overlapping generations, endogenous labour supply, and multiplicative external habits. The dynamics of the economy is characterised by a two-dimensional map describing the time evolution of capital and labour supply. We show that if the relative importance of external habits in the utility function is sufficiently high, multiple (determinate or indeterminate) fixed points and poverty traps can exist. In addition, periodic or quasiperiodic behaviour and/or coexistence of attractors may occur.
Local and global bifurcations in an economic growth model with endogenous labour supply and multiplicative external habits
Luca Gori
;SODINI, MAURO
2014-01-01
Abstract
This paper analyses the mathematical properties of an economic growth model with overlapping generations, endogenous labour supply, and multiplicative external habits. The dynamics of the economy is characterised by a two-dimensional map describing the time evolution of capital and labour supply. We show that if the relative importance of external habits in the utility function is sufficiently high, multiple (determinate or indeterminate) fixed points and poverty traps can exist. In addition, periodic or quasiperiodic behaviour and/or coexistence of attractors may occur.File in questo prodotto:
File | Dimensione | Formato | |
---|---|---|---|
Gori and Sodini 2014 Chaos.pdf
Open Access dal 01/04/2015
Tipologia:
Versione finale editoriale
Licenza:
NON PUBBLICO - Accesso privato/ristretto
Dimensione
2.6 MB
Formato
Adobe PDF
|
2.6 MB | Adobe PDF | Visualizza/Apri |
Chaos_Post_Print.pdf
accesso aperto
Tipologia:
Documento in Post-print
Licenza:
Tutti i diritti riservati (All rights reserved)
Dimensione
837.6 kB
Formato
Adobe PDF
|
837.6 kB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.