Habit Persistence, Money, and Overlapping Generations
AbstractThis paper provides a comprehensive characterization of the stationary and non-stationary monetary equilibria in a two-period pure exchange overlapping generations model with multiplicative habit persistence preferences. Somewhat surprisingly, the upshot is that multiplicative habit persistence preferences do not affect the qualitative properties of the dynamical system in these models. In addition, the qualitative properties of models with subtractive and multiplicative habits are largely similar. Any possibility of cyclical fluctuations beyond periodicity two is also ruled out.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12405.
Date of creation: 01 Jan 2006
Date of revision:
Publication status: Published in Journal of Economic Dynamics and Control 2006, vol. 30 no. 12, pp. 2425-2445
Contact details of provider:
Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
More information through EDIRC
Other versions of this item:
- Bunzel, Helle, 2006. "Habit persistence, money, and overlapping generations," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2425-2445, December.
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.:
- Smith, Bruce D, 1991.
"Interest on Reserves and Sunspot Equilibria: Friedman's Proposal Reconsidered,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(1), pages 93-105, January.
- Smith, B.D., 1988. "Interest On Reserves And Sunspot Equilibria: Friedman'S Proposal Reconsidered," RCER Working Papers 119, University of Rochester - Center for Economic Research (RCER).
- Michele Boldrin & Michael Woodford, 1988.
"Equilibruim Models Displaying Endogenous Fluctuations and Chaos: A Survey,"
UCLA Economics Working Papers
530, UCLA Department of Economics.
- Boldrin, Michele & Woodford, Michael, 1990. "Equilibrium models displaying endogenous fluctuations and chaos : A survey," Journal of Monetary Economics, Elsevier, vol. 25(2), pages 189-222, March.
- Bhattacharya, Joydeep & Russell, Steven, 2003.
"Two-period cycles in a three-period overlapping generations model,"
Journal of Economic Theory,
Elsevier, vol. 109(2), pages 378-401, April.
- Bhattacharya, Joydeep & Russell, Steven, 2002. "Two-Period Cycles in a Three-Period Overlapping Generations Model," Staff General Research Papers 10250, Iowa State University, Department of Economics.
- Grandmont, Jean-Michel, 1985. "On Endogenous Competitive Business Cycles," Econometrica, Econometric Society, vol. 53(5), pages 995-1045, September.
- Reichlin Pietro, 1997. "Endogenous Cycles in Competitive Models: An Overview," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 1(4), pages 1-13, January.
- Lahiri, Amartya & Puhakka, Mikko, 1998.
"Habit Persistence in Overlapping Generations Economies under Pure Exchange,"
Journal of Economic Theory,
Elsevier, vol. 78(1), pages 176-186, January.
- Amartya Lahiri & Mikko Puhakka, 1996. "Habit Persistence in Overlapping Generations Economies Under Pure Exchange," UCLA Economics Working Papers 754, UCLA Department of Economics.
- Bullard, James & Duffy, John, 1998. "Learning And The Stability Of Cycles," Macroeconomic Dynamics, Cambridge University Press, vol. 2(01), pages 22-48, March.
- Carroll, Christopher D., 2000.
"Solving consumption models with multiplicative habits,"
Elsevier, vol. 68(1), pages 67-77, July.
- Christopher D Carroll, 2000. "Solving Consumption Models with Multiplicative Habits," Economics Working Paper Archive 421, The Johns Hopkins University,Department of Economics.
- Dimitrios Varvarigos, 2013. "Endogenous Cycles and Human Capital," Discussion Papers in Economics 13/18, Department of Economics, University of Leicester.
- Orrego, Fabrizio, 2011. "Habit formation and sunspots in overlapping generations models," Working Papers 2011-013, Banco Central de Reserva del Perú.
- Barnett, Richard C. & Bhattacharya, Joydeep & Bunzel, Helle, 2010.
"Resurrecting equilibria through cycles in an overlapping generations model of money,"
Journal of Macroeconomics,
Elsevier, vol. 32(2), pages 515-526, June.
- Barnett, Richard C. & Bhattacharya, Joydeep & Bunzel, Helle, 2010. "Resurrecting Equilibria Through Cycles in an Overlapping Generations Model of Money," Staff General Research Papers 32099, Iowa State University, Department of Economics.
- Bossi, Luca & Gomis-Porqueras, Pere, 2009.
"Consequences Of Modeling Habit Persistence,"
Cambridge University Press, vol. 13(03), pages 349-365, June.
- Luca Bossi & Pere Gomis-Porqueras, 2008. "Consequences of Modeling Habit Persistence," Working Papers 0701, University of Miami, Department of Economics.
- Pere Gomis-Porqueras & Luca Bossi, 2005. "Consequences of Modeling Habit Persistence," Working Papers 0605, University of Miami, Department of Economics, revised 27 Apr 2007.
- Gómez Manuel A., 2010. "Endogenous Growth, Habit Formation and Convergence Speed," The B.E. Journal of Macroeconomics, De Gruyter, vol. 10(1), pages 1-32, January.
- Richard C. Barnett & Joydeep Bhattacharya, 2007.
"Rejuveniles and Growth,"
Economics Working Papers
2007-11, School of Economics and Management, University of Aarhus.
- Barnett, Richard C. & Bhattacharya, Joydeep & Bunzel, Helle, 2007. "Minimum Consumption Requirements and Cycles in an Overlapping Generations Model of Money," Staff General Research Papers 12834, Iowa State University, Department of Economics.
- Richard C. Barnett & Joydeep Bhattacharya & Helle Bunzel, 2007. "Resurrecting Equilibria Through Cycles," Economics Working Papers 2007-12, School of Economics and Management, University of Aarhus.
- Hiraguchi, Ryoji, 2008. "The overlapping generations model with habit formation: A comment," Journal of Economic Dynamics and Control, Elsevier, vol. 32(12), pages 4016-4017, December.
- Ahmad Naimzada & Marina Pireddu, 2013. "A positional game for an overlapping generation economy," Working Papers 247, University of Milano-Bicocca, Department of Economics, revised Jun 2013.
- Gori, Luca & Sodini, Mauro, 2012. "Indeterminacy and nonlinear dynamics in an OLG growth model with endogenous labour supply and inherited tastes," MPRA Paper 35942, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephanie Bridges) The email address of this maintainer does not seem to be valid anymore. Please ask Stephanie Bridges to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.