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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U2 - 10.1016/0167-2681(87)90054-0
DO - 10.1016/0167-2681(87)90054-0
M3 - Article
AN - SCOPUS:38249035325
VL - 8
SP - 429
EP - 452
JO - Journal of Economic Behavior and Organization
JF - Journal of Economic Behavior and Organization
SN - 0167-2681
IS - 3
ER -