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Endogenous cycles from income diversity, capital ownership, and differential savings

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  • Agliari, Anna
  • Böhm, Volker
  • Pecora, Nicolò

Abstract

Endogenous cycles in standard growth models with capital accumulation of the Solow or the OLG type occur only when there is some degree of heterogeneity among consumers, differential savings, income diversity, or market specialization. Otherwise, without income effects or distribution effects long run steady states are mostly asymptotically stable predicting stable balanced growth for many of the commonly accepted growth models under most aggregative concave neoclassical production functions.

Suggested Citation

  • Agliari, Anna & Böhm, Volker & Pecora, Nicolò, 2020. "Endogenous cycles from income diversity, capital ownership, and differential savings," Chaos, Solitons & Fractals, Elsevier, vol. 130(C).
    • Handle: RePEc:eee:chsofr:v:130:y:2020:i:c:s0960077919303819
    DOI: 10.1016/j.chaos.2019.109435
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    References listed on IDEAS

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    Cited by:

    1. Marco Ranaldi & Elisa Palagi, 2022. "Heterogeneity in Macroeconomics: The Compositional Inequality Perspective," LIS Working papers 848, LIS Cross-National Data Center in Luxembourg.
    2. Martins, Adriel M.F. & Fernandes, Leonardo H.S. & Nascimento, Abraão D.C., 2023. "Scientific progress in information theory quantifiers," Chaos, Solitons & Fractals, Elsevier, vol. 170(C).

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    More about this item

    Keywords

    Capital ownership; Income diversity; Differential savings; Neimark–Sacker bifurcation; Homoclinic tangles; Multistability;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

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