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Endogenous Retirement and Monetary Cycles


In a model of overlapping generations with a continuum of finitely lived individuals, the aggregate price dynamics is characterized by a functional differential equation of mixed type. Delays and advances are exogenous when age at retirement is mandatory; they become state-dependent when individuals are allowed to choose their age at retirement. Using the Hopf bifurcation theorem, periodic solutions in the neighborhood of the monetary steady state appearing with a mandatory retirement age vanish with a chosen age.

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Article provided by Taylor & Francis Journals in its journal Mathematical Population Studies.

Volume (Year): 15 (2008)
Issue (Month): 4 ()
Pages: 214-229

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Handle: RePEc:taf:mpopst:v:15:y:2008:i:4:p:214-229
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