University of Oulu

Cycles and Indeterminacy in Overlapping Generations Economies with Stone-Geary Preferences

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Author: Koskela, Erkki, Puhakka, Mikko
Organizations: University of Oulu, Oulu Business School, Department of Economics
Format: eBook
Online Access: PDF Full Text (PDF, )
Persistent link: http://urn.fi/urn:nbn:fi-fe200802011063
Language: English
Published: 2008
Publish Date: 2008-02-01
Description:

Abstract

We explore dynamics in an OG economy under pure exchange and Stone-Geary preferences with positive level of saving and non-negative public debt and a relatively small second period endowment. We show the existence of a nontrivial steady state, which is either determinate or indeterminate. Furthermore, and importantly, there can be only two cycles, but no cycles of higher order.


Series: University of Oulu, Department of Economics, Working papers
Issue: 802
Subjects:
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