We examine the OLG model of Reichlin (1986). By using the Helleman's method (1980), we show that the difference equation of the model can be locally studied from the Feigenbaum equation. We can then explain the existence of endogenous fluctuations acording to the productivity level and the coefficient of risk aversion. These fluctuations take the form of a period doubling bifurcation.
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Paper provided by Centre for Research into Industry, Enterprise, Finance and the Firm in its series CRIEFF Discussion Papers with number
9726.
Find related papers by JEL classification: C60 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - General E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles