An exact discount factor restriction for period-three cycles in dynamic optimization models
成果类型：
Article
署名作者：
Mitra, T
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1996.0056
发表日期：
1996
页码：
281-305
关键词：
摘要：
This paper explores the precise extent of discounting needed to generate period-three cycles in a standard aggregative dynamic optimization framework. It is shown that there is a ''universal constant'', M = [(root 5 - 1)/2](2) approximate to 0.3819, such that (i) if an optimal program of any dynamic optimization model exhibits a period-three cycle, then the discount factor is less than M; and (ii) if the discount factor is smaller than M, then it is possible ro construct a transition possibility set and a utility function such that the resulting dynamic optimization model exhibits a period-three cycle. (C) 1996 Academic Press, Inc.