Global dynamics in macroeconomics: an overlapping generations example
AbstractIn this paper, we present some techniques used in the dynamical systems literature that let us characterize the stable and unstable manifolds of a given dynamical system. As a result, we can study how an economy behaves as it moves far away from the steady state in an environment where economic agents do not face uncertainty. The underlying idea behind these methods is to compute the manifolds nonlocally by exploiting an invariance condition that analytically describes these manifolds. In order to illustrate these techniques, we present a general equilibrium model under two different policy regimes demonstrating that local and global dynamics of an economic system can be substantially different.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Dynamics and Control.
Volume (Year): 27 (2003)
Issue (Month): 11-12 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jedc
Other versions of this item:
- Gomis-Porqueras, Pere & Haro, Alex, 2003. "Global dynamics in macroeconomics: an overlapping generations example," Journal of Economic Dynamics and Control, Elsevier, vol. 27(11), pages 1941-1959.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Douglas W. Diamond & Philip H. Dybvig, 2000.
"Bank runs, deposit insurance, and liquidity,"
Federal Reserve Bank of Minneapolis, issue Win, pages 14-23.
- Bischi, Gian Italo & Gardini, Laura & Kopel, Michael, 2000. "Analysis of global bifurcations in a market share attraction model," Journal of Economic Dynamics and Control, Elsevier, vol. 24(5-7), pages 855-879, June.
- Yokoo, Masanori, 2000. "Chaotic dynamics in a two-dimensional overlapping generations model," Journal of Economic Dynamics and Control, Elsevier, vol. 24(5-7), pages 909-934, June.
- Schreft, Stacey L. & Smith, Bruce D., 2000.
"The evolution of cash transactions: Some implications for monetary policy,"
Journal of Monetary Economics,
Elsevier, vol. 46(1), pages 97-120, August.
- Stacey L. Schreft & Bruce D. Smith, 1997. "The evolution of cash transactions: some implications for monetary policy," Financial Services working paper 97-04, Federal Reserve Bank of Cleveland.
- Stacey L. Schreft & Bruce D. Smith, 1999. "The evolution of cash transactions : some implications for monetary policy," Research Working Paper 99-02, Federal Reserve Bank of Kansas City.
- Gaspar, Jess & L. Judd, Kenneth, 1997.
"Solving Large-Scale Rational-Expectations Models,"
Cambridge University Press, vol. 1(01), pages 45-75, January.
- Smale, Stephen, 1976. "Dynamics in General Equilibrium Theory," American Economic Review, American Economic Association, vol. 66(2), pages 288-94, May.
- Townsend, Robert M, 1987. "Economic Organization with Limited Communication," American Economic Review, American Economic Association, vol. 77(5), pages 954-71, December.
- Judd, Kenneth L. & Guu, Sy-Ming, 1997. "Asymptotic methods for aggregate growth models," Journal of Economic Dynamics and Control, Elsevier, vol. 21(6), pages 1025-1042, June.
- Pere Gomis-Porqueras & Àlex Haro, 2005.
"Global Bifurcations, Credit Rationing and Recurrent Hyperinflations,"
239, Barcelona Graduate School of Economics.
- Gomis-Porqueras, Pere & Haro, Alex, 2007. "Global bifurcations, credit rationing and recurrent hyperinflations," Journal of Economic Dynamics and Control, Elsevier, vol. 31(2), pages 473-491, February.
- Zhigang Feng, 2010. "Numerical Simulation of the Overlapping Generations Models with Indeterminacy," Levine's Working Paper Archive 661465000000001110, David K. Levine.
- Gomis-Porqueras, Pere & Haro, Àlex, 2009.
"A geometric description of a macroeconomic model with a center manifold,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 33(6), pages 1217-1235, June.
- Pere Gomis-Porqueras & Àlex Haro, 2008. "A Geometric Description of a Macroeconomic Model with a Center Manifold," Working Papers 364, Barcelona Graduate School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.