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 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 consider a discrete-time two-sector Cobb-Douglas economy with positive sector specific external effects. We show that indetermincay of steady states and cycles can easily arise with constant or decreasing social returns to scale, and very small market imperfections. This is in sharp contrast...

We study an endogenous business cycle model with Cournotian monopolistic competition and an endogenous number of firms in each sector. Our model is a simple general equilibrium macroeconomic model introducing overlapping generation both of consumers and firms. Firms strategically decide on...

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 article is interested in the scope for indeterminacies that originate from capital stock externalities in the technological set of the reference model of the multisectoral optimal growth literature. Sufficient conditions for local indeterminacies and oscillations are established and rest on...

We compare the dunamics under myopic foresight and under perfect foresight in an overlapping generations model with capital accumulation and two-period lived individuals. When the rational dynamics are defined and the myopic dynamics are monotonic, the study of myopic foresight allows to...

This paper examines underemployment fluctuations in an OG model with cournotian competition on the market for a good. In the case of constant returns, it demonstrates the existence conditions of a stable two-period cycle (in prices and employment amounts) in the backward perfect foresight...