Global indeterminacy of the equilibrium in the Chamley model of endogenous growth in the vicinity of a Bogdanov–Takens bifurcation
This paper studies the dynamics implied by the Chamley (1993) model, a variant of the two-sector model with an implicit characterization of the learning function. We first show that under some “regularity” conditions regarding the learning function, the model has (a) one steady state, (b) no steady states or (c) two steady states (one saddle and one non-saddle). Moreover, via the Bogdanov–Takens theorem, we prove that for critical regions of the parameters space, the dynamics undergoes a particular global phenomenon, namely the homoclinic bifurcation. Because these findings imply the existence of a continuum of equilibrium trajectories, all departing from the same initial value of the predetermined variable, the model exhibits global indeterminacy.
Year of publication: |
2014
|
---|---|
Authors: | Bella, Giovanni ; Mattana, Paolo |
Published in: |
Mathematical Social Sciences. - Elsevier, ISSN 0165-4896. - Vol. 71.2014, C, p. 69-79
|
Publisher: |
Elsevier |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Kaldorian assumptions and endogenous fluctuations: a note on Schinasi’s IS–LM model
Bella, Giovanni, (2013)
-
The relationship among CO2 emissions, electricity power consumption and GDP in OECD countries
Bella, Giovanni, (2014)
-
Bella, Giovanni, (2018)
- More ...