Backward dynamics, inverse limits and global sunspots
In economic theory, there exist many important problems whose mathematical formulation is a function relating the current value of a certain state variable to its (accurately forecast) future value. The most widely studied class of such problems is the Overlapping generations (OLG) models in their innumerable variations are probably the best known example of such problems. A difficulty arises when, for certain specifications of ``fundamentals"", the map relating future to present values of the state variable is manyâ€”toâ€”one and therefore the dynamics defined by the iterates of the map is backward in time. Since in real life agents are concerned about the future not the past, one would like to use the investigation of backward-moving dynamical models to understand the general properties of the forward dynamics associated with them. The purpose of this paper is to provide a complete characterization of this problem by means of certain concepts and methods known in the mathematical literature as ``inverse limits"". After a concise introduction to these ideas relatively little known in economics, the paper provides a systematic application to a basic OLG model. In this context, we also provide an analysis of global sunspots (i.e., sunspots that are not necessarily located near a stationary state or a periodic orbit), arising in OLG models characterized by backward dynamics.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
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.
|Date of creation:||11 Aug 2004|
|Date of revision:|
|Contact details of provider:|| Web page: http://comp-econ.org/|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sce:scecf4:90. 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: (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.