Power Dynamics: Multiple Equilibria, Cyclical Fluctuations, and Local Stability in Intertemporal General Equilibrium Models

Gong Guan and Heng-Fu Zou ()
Additional contact information
Gong Guan: Institute of Advanced Studies, Wuhan University

No 525, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: Based on the theory of power proposed by John Galbraith, Bertrand Russell and other social scientists, this paper offers two positive intertemporal general equilibrium models to understand: i.) How do rational people decide their optimal consumption, property accumulation, and power? ii.)What causes people to choose different growth path of power? iii.)Why would two people, whose power and wealth endowment levels are quite close, differ so drastically in their future practice? iv.) Why could the rational pursue of power in a "perfect" world is compatible with cyclical power patterns? The simple two-dimensional model considers the dynamic property of power. The second model is an extension of the first model, and analyses the wealth effect on power accumulation. Numerical simulations have provided strong support for our modeling approaches.

Keywords: Power; Stable limit cycles; Hopf bifurcation; Multiple equilibria (search for similar items in EconPapers)
Pages: 21 pages
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://down.aefweb.net/WorkingPapers/w525.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cuf:wpaper:525

Access Statistics for this paper

More papers in CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics Contact information at EDIRC.
Bibliographic data for series maintained by Qiang Gao ().