We consider infinite horizon variational problems on different spaces of curves in presence of constraints on the state. We establish several necessary conditions of optimality, and give relations between these different problems.

This paper is a study of money in overlapping generations models with cash-in-advance constraints. We first offer a brief review of different features of cash-in-advance constraint. Then we propose a general formulation and study the neutrality of money. We show that both neutrality and...

We adress the issue of optimal growth when standard-of-living aspirations are transmitted from one generation to the next. We derive the condition for the optimal solution to be stable in the saddle-point sense and show that this optimal solution may display damped oscillations even when the...

We analyze the effect of a constant debt policy on capital accumulation and provide an indepth treatment of the dynamics in the economy of Diamond. We derive the conditions for avoiding a debt crisis in both the short-run and the long-run and provide geometrical tools to analyze the issue of...

This paper adds to the empirical literature on business cycle properties across exchange rate regimes. Earlier research examined the consequences of the Bretton Woods system on international stylized facts. However, the conclusions might be biased by the oil shocks at the beginning of the...

In this paper we examine the influence of monetary policy on real activity in France and attempt to isolate the different monetary transmission channels. We use a multivariate model including : output, prices, a monetary aggregate, a short-term interest rate and a short -term bank loan rate.

This paper examines the cyclical properties of a finance constrained economy populated by two classes of households with heterogeneous preferences and featuring social increasing returns-to-scale. The model exhibits indeterminacy for externalities mild enough so that the labor demand curve is...

This paper investigates the sources of disturbances that caused the conjonctural breakdowns in the early 90's, in France, in the United States, in the United Kingdom and germany, through a V.E.C.M. on contributions to growth.

In discrete three-dimensional dynamical systems frequently encountered in dynamic general equilibrium models, local indeterminacy -sunspot equilibria - and local bifurcations -endogenous deterministic fluctuations - issues are quite difficult to handle. Pitfalls derive from the fact that in...