Trend-reverting fluctuations in the life-cycle model

• 成果类型: Article
• 署名作者: Azariadis, C; Bullard, J; Ohanian, L
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - St. Louis; University of California System; University of California Los Angeles
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/S0022-0531(03)00032-2
• 发表日期: 2004
• 页码: 334-356
• 关键词: business cycles; Dynamic adjustment; overlapping generations

摘要

Aggregate time series provide evidence of short-term dynamic adjustment that appears to be governed by complex or negative real eigenvalues. This finding is at odds with the predictions of reasonably parameterized, convex one-sector growth models with complete markets. We study life-cycle economies in which aggregate saving depends non-trivially on the distribution of wealth among cohorts. If consumption goods are weak gross substitutes near the steady-state price vector, we prove that the unique equilibrium of a life-cycle exchange economy converges to the unique non-monetary steady state via damped oscillations. We also discuss examples and extensions. (C) 2003 Elsevier Science (USA). All rights reserved.