Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
966267 | Journal of Macroeconomics | 2007 | 7 Pages |
Abstract
We incorporate Stone-Geary preferences into an overlapping generations economy under pure exchange, and explore stability, indeterminacy, and cycles with positive levels of saving and nonnegative public debt. A stable nontrivial steady state exists for parameter values, for which there does not exist equilibrium in the model with purely logarithmic utility function. We also show the possibility of a period-doubling bifurcation (a two-cycle).
Related Topics
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Economics and Econometrics
Authors
Erkki Koskela, Mikko Puhakka,