Competitive growth in a life-cycle model: existence and dynamics

d'Albis, Hippolyte () and Emmanuelle Augeraud-Véron ()

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

Abstract: In this paper, the dynamic behaviour of the capital growth rate is analyzed using an overlapping-generations model with continuous trading and finitely lived agents. Assuming a technology satisfying constant returns to capital, the equilibrium growth rate is piecewise-defined by functional differential equations with both delayed and advanced terms. The existence of a solution expressed as a series of exponentials crucially depends on the initial wealth distribution among cohorts. Upon existence, the dynamics of the capital growth rate has a saddle-point trajectory that converges to a unique steady-state. Along the transition path, the growth rate exhibits exponentially decreasing oscillations.

Keywords: Overlapping-generations models; endogenous growth; functional differential equations of mixed type. (search for similar items in EconPapers)
JEL-codes: D50 D90 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic
Date: 2004-02
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ftp://mse.univ-paris1.fr/pub/mse/cahiers2004/V04016.pdf (application/pdf)

Related works:
Journal Article: COMPETITIVE GROWTH IN A LIFE-CYCLE MODEL: EXISTENCE AND DYNAMICS (2009)
Working Paper: Competitive Growth in a Life-cycle Model: Existence and Dynamics (2009)
Working Paper: Competitive growth in a life-cycle model: Existence and dynamics (2009)
Working Paper: Competitive Growth in a Life-cycle Model: Existence and Dynamics (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:mse:wpsorb:v04016

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