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Decisions in Economics and Finance

, Volume 41, Issue 2, pp 163–186 | Cite as

A model of growth with inherited tastes

  • Luciano Fanti
  • Luca GoriEmail author
  • Cristiana Mammana
  • Elisabetta Michetti
Article
  • 17 Downloads

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 

JEL Classification

C61 C62 C68 E32 J22 O41 

Notes

Acknowledgements

The authors gratefully acknowledge that this work has been performed within the activity of the PRIN-2009 project “Structural Change and Growth”, MIUR (Ministry of Education), Italy. The authors are also indebted to Xavier Raurich, Jaime Alonso-Carrera and participants at conferences “Structural Change, Dynamics and Economic Growth” held in Livorno, Italy, on September 2013 and “International Conference on Applied Business and Economics” held in Manhattan, New York, USA, on October 2013. The authors also thank two anonymous reviewers for insightful comments and suggestions allowing a substantial improvement in the quality of the work. The usual disclaimer applies.

Compliance with ethical standards

Conflict of interest

The authors declare that they have no conflict of interest.

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Copyright information

© Associazione per la Matematica Applicata alle Scienze Economiche e Sociali (AMASES) 2018

Authors and Affiliations

  1. 1.Department of Economics and ManagementUniversity of PisaPisaItaly
  2. 2.Department of LawUniversity of PisaPisaItaly
  3. 3.Department of Economics and LawUniversity of MacerataMacerataItaly

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