In this paper we model an OLG economy à la Kiyotaki and Moore whose novel feature is the role of money as a store of value and of bequest as a source of funds to be “invested” in landholding. The dynamics generated by the model are generally characterized by irregular cyclical trajectories and, under special configuration of the parameters, a strange attractor appears. In this setting, an expansionary monetary policy may have a stabilizing role due to the interaction between money holding and the accumulation of borrowers’ net worth.

Assenza, T., Agliari, A., Delli Gatti, D., Santoro, E., Borrowing Constraints and Complex Dynamics in an OLG Framework, <<JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION>>, 2009; 72 (Novembre): 656-669 [http://hdl.handle.net/10807/24221]

Borrowing Constraints and Complex Dynamics in an OLG Framework

Assenza, Tiziana;Agliari, Anna;Delli Gatti, Domenico;Santoro, Emiliano
2009

Abstract

In this paper we model an OLG economy à la Kiyotaki and Moore whose novel feature is the role of money as a store of value and of bequest as a source of funds to be “invested” in landholding. The dynamics generated by the model are generally characterized by irregular cyclical trajectories and, under special configuration of the parameters, a strange attractor appears. In this setting, an expansionary monetary policy may have a stabilizing role due to the interaction between money holding and the accumulation of borrowers’ net worth.
2009
Inglese
Assenza, T., Agliari, A., Delli Gatti, D., Santoro, E., Borrowing Constraints and Complex Dynamics in an OLG Framework, <<JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION>>, 2009; 72 (Novembre): 656-669 [http://hdl.handle.net/10807/24221]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/24221
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