Discounting and long-run behavior: Global bifurcation analysis of a family of dynamical systems

• 成果类型: Article
• 署名作者: Mitra, T; Nishimura, K
• 署名单位: Cornell University; Kyoto University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1006/jeth.2000.2642
• 发表日期: 2001
• 页码: 256-293
• 关键词: discounting; long-run behavior; history independence; unique switching; bifurcation diagram

摘要

This paper is concerned with the relationship between the discount rate and the nature of long-run behavior in dynamic optimization models. The theory is developed under two conditions. The first is history independence, which rules out multiple limit sets. The second is a condition that avoids the reversion to a stable steady state, as the discount factor is lowered, once cycles have emerged. These conditions appear to be the minimal restrictions that would allow analysis by a bifurcation diagram. The results are illustrated by two well-known examples in this literature, due to Sutherland and Weitzman-Samuelson. Journal Economic Literature Classification Numbers. C61, D90, O41. (C) 2001 Academic Press.