On the existence of endogenous cycles
成果类型：
Article
署名作者：
Balasko, Y; Ghiglino, C
署名单位：
heSam Universite; Universite Pantheon-Sorbonne
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1006/jeth.1995.1086
发表日期：
1995
页码：
566-577
关键词：
摘要：
Endogenous business cycles have been known to exist ill the overlapping-generations model for quite a long time. The literature seems to imply that these cycles may exist only if individuals show rates of preference for the present that are high enough, and these values must be so high that they are unrealistic. While this observation is true if preferences are homothetic, we show in this paper that, once the homotheticity requirement is dropped, a sufficient condition for the existance of cycles is that the Engel curve defined fbr equal prices ( therefore, taken equal to one) has at least a point where the slope is smaller than one. This condition expresses a mild form of impatience. Given this condition, it is always possible to find a discounted utility function (for any arbitrary given discount rate smaller than one) and positive endowments such that the corresponding overlapping-generations model features cycles of order two. (C) Academic Press Inc.