Abstract
Grandmont (1985) showed that in a 1-dimensional overlapping generations (OLG-) model chaotic fluctuations can occur, when the traders offer curve is highly nonlinear due to a very strong income effect. We present a numerical investigation of the global dynamics of a 2-dimensional OLG-model as introduced by Grandmont (1992). Chaotic output fluctuations already arise when the income effect is not too strong.
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© 1994 Springer Science+Business Media Dordrecht
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Hommes, C.H., Van Strien, S.J., De Vilder, R.G. (1994). Chaotic Dynamics in a Two-Dimensional Overlapping Generation Model: A Numerical Investigation. In: Grasman, J., van Straten, G. (eds) Predictability and Nonlinear Modelling in Natural Sciences and Economics. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-0962-8_53
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DOI: https://doi.org/10.1007/978-94-011-0962-8_53
Publisher Name: Springer, Dordrecht
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