Global equilibrium dynamics with stationary recursive preferences

J. Benhabib, M. Majumdar, K. Nishimura

    Research output: Contribution to journalArticlepeer-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 languageEnglish (US)
    Pages (from-to)429-452
    Number of pages24
    JournalJournal of Economic Behavior and Organization
    Volume8
    Issue number3
    DOIs
    StatePublished - Sep 1987

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Organizational Behavior and Human Resource Management

    Fingerprint Dive into the research topics of 'Global equilibrium dynamics with stationary recursive preferences'. Together they form a unique fingerprint.

    Cite this