We present a discrete time version of the Pasinetti-Solow economic growth model. Workers and capitalists are assumed to save on the basis of rational choices. Workers face a finite time horizon and base their consumption choices on a life-cycle motive, whereas capitalists behave like an infinitely-lived dynasty. The accumulation of both capitalists' and workers' wealth through time is reducedto a two-dimensional map whose local asymptotic stability properties are studied. Various types of bifurcation emerge (flip, Neimark-Sacker, saddle-node and transcritical): a precondition for chaotic dynamics.
Complex behaviour in the Pasinetti-Solow model with with optimal saving behaviour / Commendatore, Pasquale. - (2008). (Intervento presentato al convegno Chaos2008: Chaotic modeling and simulation, international conference tenutosi a chania, Creta, Grecia: Maich conference centre nel 2-6 giugno 2008).
Complex behaviour in the Pasinetti-Solow model with with optimal saving behaviour
COMMENDATORE, PASQUALE
2008
Abstract
We present a discrete time version of the Pasinetti-Solow economic growth model. Workers and capitalists are assumed to save on the basis of rational choices. Workers face a finite time horizon and base their consumption choices on a life-cycle motive, whereas capitalists behave like an infinitely-lived dynasty. The accumulation of both capitalists' and workers' wealth through time is reducedto a two-dimensional map whose local asymptotic stability properties are studied. Various types of bifurcation emerge (flip, Neimark-Sacker, saddle-node and transcritical): a precondition for chaotic dynamics.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
