A model of growth with inherited tastes

Luciano Fanti, Luca Gori (), Cristiana Mammana and Elisabetta Michetti
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Cristiana Mammana: University of Macerata
Elisabetta Michetti: University of Macerata

Decisions in Economics and Finance, 2018, vol. 41, issue 2, No 4, 163-186

Abstract: Abstract This research aims at studying a general equilibrium closed economy with overlapping generations and inherited tastes (aspirations), as in de la Croix (Econ Lett 53(1):89–96, 1996). It shows that the interaction between the intensity of aspirations and the elasticity of substitution of effective consumption affects the qualitative and quantitative long-term dynamics from both local and global perspectives. The related literature is extended by showing that (1) the Neimark–Sacker bifurcation found by de la Croix (1996) does not necessarily give rise to fluctuations and (2) endogenous (long-lasting) fluctuations occur through the emergence of period-doubling bifurcations.

Keywords: Aspirations; Bifurcations; Endogenous fluctuations; Overlapping generations (search for similar items in EconPapers)
JEL-codes: C61 C62 C68 E32 J22 O41 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10203-018-0221-4

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