Indeterminacy and nonlinear dynamics in an OLG growth model with endogenous labour supply and inherited tastes

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• 作者：Luca Gori (1)
  Mauro Sodini (2)
  
• 关键词：Aspirations ; Indeterminacy ; Labour supply ; OLG model ; Nonlinear dynamics ; C61 ; C62 ; C68 ; J22 ; O41
• 刊名：Decisions in Economics and Finance
• 出版年：2014
• 出版时间：April 2014
• 年：2014
• 卷：37
• 期：1
• 页码：159-179
• 全文大小：1,040 KB
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• 作者单位：Luca Gori (1)
  Mauro Sodini (2)
  
  1. Department of Law, University of Genoa, Via Balbi, 30/19, 16126, Genoa, GE, Italy
  2. Department of Economics and Management, University of Pisa, Via Cosimo Ridolfi, 10, 56124, Pisa, PI, Italy
  
• ISSN：1129-6569

文摘

This study analyses the dynamics of a two-dimensional overlapping generations economy with endogenous labour supply à la Reichlin (J Econ Theory 40(1):89-02, 1986) and aspirations. We show that the degree of nonlinearity of consumption externality in individual utility is responsible for the existence of either one steady state or two steady states. In addition, some interesting global dynamic properties, such as cyclical behaviour and/or global indeterminacy, emerge depending on the relative importance of aspirations in utility.