Global equilibrium dynamics with stationary recursive preferences

J. Benhabib; M. Majumdar; K. Nishimura

doi:10.1016/0167-2681(87)90054-0

Global equilibrium dynamics with stationary recursive preferences

J. Benhabib, M. Majumdar, K. Nishimura

Research output: Contribution to journal › Article › peer-review

Abstract

We study the global dynamics of capital accumulation for a general two-sector model which is not necessarily convex and where preferences of an infinitely-lived agent are stationary but not additively separable. We obtain monotonicity and convergence results for capital under 'normality' assumptions on preferences and factor intensity assumptions on technology. We then derive results on oscillatory dynamics under alternative factor-intensity conditions or under the assumption of inferiority of 'future utilities'. Finally, in an exchange model with two agents we show that utilities will be monotonic or oscillatory depending on the normality or inferiority of the preferences.

Original language	English (US)
Pages (from-to)	429-452
Number of pages	24
Journal	Journal of Economic Behavior and Organization
Volume	8
Issue number	3
DOIs	https://doi.org/10.1016/0167-2681(87)90054-0
State	Published - Sep 1987

ASJC Scopus subject areas

Economics and Econometrics
Organizational Behavior and Human Resource Management

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@article{07bf462a64624540bd2a818feefc1223,

title = "Global equilibrium dynamics with stationary recursive preferences",

abstract = "We study the global dynamics of capital accumulation for a general two-sector model which is not necessarily convex and where preferences of an infinitely-lived agent are stationary but not additively separable. We obtain monotonicity and convergence results for capital under 'normality' assumptions on preferences and factor intensity assumptions on technology. We then derive results on oscillatory dynamics under alternative factor-intensity conditions or under the assumption of inferiority of 'future utilities'. Finally, in an exchange model with two agents we show that utilities will be monotonic or oscillatory depending on the normality or inferiority of the preferences.",

author = "J. Benhabib and M. Majumdar and K. Nishimura",

note = "Funding Information: *Presented at the Workshop on the {\textquoteleft}Advances in the Analysis of Economic Dynamic Systems{\textquoteright}, University of Venice, January 7-11, 1986. The generous support from the C.V. Starr Center for Applied Economics for this project is gratefully acknowledged. The project was also supported by N.S.F. Grant 86-055-03. {\textquoteleft}Multisector models with convex technology and additively separable preferences have been extensively studied. See McKenzie (1976), Brock and Scheinkman (1976) Cass and She11 (1976).",

year = "1987",

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doi = "10.1016/0167-2681(87)90054-0",

language = "English (US)",

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journal = "Journal of Economic Behavior and Organization",

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TY - JOUR

T1 - Global equilibrium dynamics with stationary recursive preferences

AU - Benhabib, J.

AU - Majumdar, M.

AU - Nishimura, K.

N1 - Funding Information: *Presented at the Workshop on the ‘Advances in the Analysis of Economic Dynamic Systems’, University of Venice, January 7-11, 1986. The generous support from the C.V. Starr Center for Applied Economics for this project is gratefully acknowledged. The project was also supported by N.S.F. Grant 86-055-03. ‘Multisector models with convex technology and additively separable preferences have been extensively studied. See McKenzie (1976), Brock and Scheinkman (1976) Cass and She11 (1976).

PY - 1987/9

Y1 - 1987/9

N2 - We study the global dynamics of capital accumulation for a general two-sector model which is not necessarily convex and where preferences of an infinitely-lived agent are stationary but not additively separable. We obtain monotonicity and convergence results for capital under 'normality' assumptions on preferences and factor intensity assumptions on technology. We then derive results on oscillatory dynamics under alternative factor-intensity conditions or under the assumption of inferiority of 'future utilities'. Finally, in an exchange model with two agents we show that utilities will be monotonic or oscillatory depending on the normality or inferiority of the preferences.

AB - We study the global dynamics of capital accumulation for a general two-sector model which is not necessarily convex and where preferences of an infinitely-lived agent are stationary but not additively separable. We obtain monotonicity and convergence results for capital under 'normality' assumptions on preferences and factor intensity assumptions on technology. We then derive results on oscillatory dynamics under alternative factor-intensity conditions or under the assumption of inferiority of 'future utilities'. Finally, in an exchange model with two agents we show that utilities will be monotonic or oscillatory depending on the normality or inferiority of the preferences.

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DO - 10.1016/0167-2681(87)90054-0

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VL - 8

SP - 429

EP - 452

JO - Journal of Economic Behavior and Organization

JF - Journal of Economic Behavior and Organization

IS - 3

ER -

Global equilibrium dynamics with stationary recursive preferences

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