Presentation of the paper
 
Homoclinic Bifurcations and Global Indeterminacy in the Chamley's Model of Endogenous Growth

Speaker
Paolo Mattana
Università di Cagliari
 
On Friday 24 April at 12:00
Aula Magna - Faculty of Economics

Abstract

We focus our attention on Chamley's (1993) model of endogenous growth to provide another example of global indeterminacy in continuous-time growth models with infinitely-lived representative agents and some form of market imperfections. By applying the homoclinic bifurcation theorem due to Kopell and Howard (1975), we are able to show that, for special parameter values, the equilibrium dynamics has a bounded region (either surrounded by a family of homoclinic or periodic orbits) in the interior of which there exists an infinite number of solutions (global indeterminacy). In order to characterize global equilibrium dynamics, we have used a particular functional form for the learning function that maintains its original concavity properties.

 
 
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