Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099939 | Journal of Economic Dynamics and Control | 2006 | 21 Pages |
Abstract
This paper provides a comprehensive characterization of the stationary and non-stationary monetary equilibria in a two-period pure exchange overlapping generations model with multiplicative habit persistence preferences. Somewhat surprisingly, the upshot is that multiplicative habit persistence preferences do not affect the qualitative properties of the dynamical system in these models. In addition, the qualitative properties of models with subtractive and multiplicative habits are largely similar. Any possibility of cyclical fluctuations beyond periodicity two is also ruled out.
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Helle Bunzel,