Borrowing constraints and complex dynamics in an OLG framework

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2009
Volume: 72
Issue: 2
Pages: 656-669

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper we model an OLG economy à la Kiyotaki and Moore whose novel feature is the role of money as a store of value and of bequest as a source of funds to be "invested" in landholding. The dynamics generated by the model are generally characterized by irregular cyclical trajectories and, under special configuration of the parameters, a strange attractor appears. In this setting, an expansionary monetary policy may have a stabilizing role due to the interaction between money holding and the accumulation of borrowers' net worth.

Technical Details

RePEc Handle
repec:eee:jeborg:v:72:y:2009:i:2:p:656-669
Journal Field
Theory
Author Count
4
Added to Database
2026-01-24