Dynamic effects of consumption externalities

被引:0
作者
Barbar, Riham [1 ]
Ismael, Mohanad [2 ]
机构
[1] San Francisco State Univ, Econ Dept, 1600 Holloway Ave, San Francisco, CA 94132 USA
[2] Birzeit Univ, Econ Dept, West Bank, Palestine
关键词
Consumption externalities; Bifurcations; Heterogeneous agents; Borrowing constraint; Local indeterminacy; Self-fulfilling expectations; Endogenous fluctuations; EQUILIBRIUM; MODEL;
D O I
10.1007/s10203-020-00296-6
中图分类号
O1 [数学]; C [社会科学总论];
学科分类号
03 ; 0303 ; 0701 ; 070101 ;
摘要
This paper examines the dynamic effects of consumption externalities in Bosi and Seegmuller (J Math Econ 46:475-492, 2010). We show that only the patient agent holds the entire capital stock at the steady state, while the impatient agent works to finance his consumption. Our main result states that consumption externalities represent the main mechanism that explains the emergence of endogenous fluctuations due to self-fulfilling expectations. Finally, consumption externalities promote the appearance of deterministic cycles of period two.
引用
收藏
页码:725 / 750
页数:26
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