University of Oulu

Cycles and Indeterminacy in overlapping generations economies with Stone-Geary preferences

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Author: Koskela, Erkki; Puhakka, Mikko1
Organizations: 1University of Oulu, Oulu Business School, Department of Economics
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, )
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Language: English
Published: 2008
Publish Date: 2008-02-01


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.

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Series: University of Oulu, Department of Economics, Working papers
Issue: 802
Copyright information: © University of Oulu, 2008. This publication is copyrighted. You may download, display and print it for your own personal use. Commercial use is prohibited.