Borrowing constraints and complex dynamics in an OLG framework
In this paper we model an OLG economy à la Kiyotaki and Moore whose novel feature is the role of money as a store of value and of bequest as a source of funds to be "invested" in landholding. The dynamics generated by the model are generally characterized by irregular cyclical trajectories and, under special configuration of the parameters, a strange attractor appears. In this setting, an expansionary monetary policy may have a stabilizing role due to the interaction between money holding and the accumulation of borrowers' net worth.
References listed on IDEAS
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.:
- Juan Carlos Cordoba & Marla Ripoll, 2003.
"Collateral Constraints in a Monetary Economy,"
- Cordoba, Juan & Ripoll, Marla, 2002. "Collateral Constraints in a Monetary Economy," Working Papers 2002-02, Rice University, Department of Economics.
- Cordoba, Juan Carlos & Ripoll, Marla, 2010. "Collateral Constraints in a Monetary Economy," Staff General Research Papers Archive 32123, Iowa State University, Department of Economics.
- de Vilder, Robin, 1996. "Complicated Endogenous Business Cycles under Gross Substitutability," Journal of Economic Theory, Elsevier, vol. 71(2), pages 416-442, November.
- Nobuhiro Kiyotaki & John Moore, 1995.
NBER Working Papers
5083, National Bureau of Economic Research, Inc.
- Grandmont, Jean-Michel & Pintus, Patrick & de Vilder, Robin, 1998.
"Capital-Labor Substitution and Competitive Nonlinear Endogenous Business Cycles,"
Journal of Economic Theory,
Elsevier, vol. 80(1), pages 14-59, May.
- Jean-Michel Grandmont & P, A, Pintus & R, De Vilder, 1997. "Capital-Labor Substitution and Competitive Nonlinear Endogenous Business Cycles," Working Papers 97-28, Centre de Recherche en Economie et Statistique.
- GRANDMONT, Jean-Michel & PINTUS, Patrick & de VILDER, Robin, 1997. "Capital-labor substitution and competitive nonlinear endogenous business cycles," CORE Discussion Papers 1997087, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bruce D. Smith & John H. Boyd, 1998. "Capital market imperfections in a monetary growth model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 11(2), pages 241-273.
- Blanchard, Olivier J, 1985.
"Debt, Deficits, and Finite Horizons,"
Journal of Political Economy,
University of Chicago Press, vol. 93(2), pages 223-47, April.
- Patrick Pintus & Ducan Sands & Robin De Vilder, 1998.
"On the Transition from Local Regular to Global Irregular Fluctuations,"
98-54, Centre de Recherche en Economie et Statistique.
- Pintus, Patrick & Sands, Duncan & de Vilder, Robin, 2000. "On the transition from local regular to global irregular fluctuations," Journal of Economic Dynamics and Control, Elsevier, vol. 24(2), pages 247-272, February.
- Pintus, Patrick & Sands, Ducan & De Vilder, Robin, 1996. "On the transition from local regular to global irregular fluctuations," CEPREMAP Working Papers (Couverture Orange) 9617, CEPREMAP.
- P. Pintus & D. Sands & R. de Vilder, 1998. "On the transition from local regular to global irregular fluctuations," THEMA Working Papers 98-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
- Pintus, P. & Sands, D. & de Vilder, R., 1998. "On the Transition from Local Regular to Global Iregular Fluctuations," Papers 9818, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Weiss, Laurence M, 1980. "The Effects of Money Supply on Economic Welfare in the Steady State," Econometrica, Econometric Society, vol. 48(3), pages 565-76, April.
- Norman Loayza & Klaus Schmidt-Hebbel & Luis Servén, 1999.
"What Drives Private Saving Across the World?,"
Working Papers Central Bank of Chile
47, Central Bank of Chile.
- Kenneth Kasa, 1998.
"Borrowing constraints and asset market dynamics: evidence from the Pacific Basin,"
Federal Reserve Bank of San Francisco, pages 17-28.
- Kenneth Kasa, 1998. "Borrowing constraints and asset market dynamics: evidence from the Pacific Basin," Pacific Basin Working Paper Series 98-04, Federal Reserve Bank of San Francisco.
- Jean-Michel Grandmont & Yves Younes, 1973.
"On the Efficiency of a Monetary Equilibrium,"
Review of Economic Studies,
Oxford University Press, vol. 40(2), pages 149-165.
- Bullard, James & Keating, John W., 1995. "The long-run relationship between inflation and output in postwar economies," Journal of Monetary Economics, Elsevier, vol. 36(3), pages 477-496, December.
- Loayza, Norman & Schmidt-Hebbel, Klaus & Serven, Luis, 2000. "What drives private saving around the world?," Policy Research Working Paper Series 2309, The World Bank.
- Mohsin S. Khan & Abdelhak S Senhadji & Bruce D. Smith, 2001.
"Inflation and Financial Depth,"
IMF Working Papers
01/44, International Monetary Fund.
- Timothy J. Kehoe & David K. Levine & Michael Woodford, 1992.
"The Optimum Quantity of Money Revisited,"
Levine's Working Paper Archive
2035, David K. Levine.
- Woodford, Michael, 1986. "Stationary sunspot equilibria in a finance constrained economy," Journal of Economic Theory, Elsevier, vol. 40(1), pages 128-137, October.
- Weil, Philippe, 1991. "Is Money Net Wealth?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(1), pages 37-53, February.
When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:72:y:2009:i:2:p:656-669. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.