This paper explores the possibility of complex dynamics in a variant of the [29] model of endogenous growth. In particular, we derive the exact parametric configuration that allows for the emergence of a double-pulse homoclinic orbit, and the rise of globally indeterminate solutions, in the same area where local determinacy was found. Our results confirm that irregular patterns and oscillating solutions can be obtained along a subsidiary homoclinic orbit at which the periodic loop starts to double, so that the system might perpetually oscillate around the long run equilibrium, being thus confined in a stationary trapping region outside the neighborhood of the steady state. The economic implications of these results are finally discussed.

Homoclinic bifurcation and the Belyakov degeneracy in a variant of the Romer model of endogenous growth

BELLA, GIOVANNI
2017-01-01

Abstract

This paper explores the possibility of complex dynamics in a variant of the [29] model of endogenous growth. In particular, we derive the exact parametric configuration that allows for the emergence of a double-pulse homoclinic orbit, and the rise of globally indeterminate solutions, in the same area where local determinacy was found. Our results confirm that irregular patterns and oscillating solutions can be obtained along a subsidiary homoclinic orbit at which the periodic loop starts to double, so that the system might perpetually oscillate around the long run equilibrium, being thus confined in a stationary trapping region outside the neighborhood of the steady state. The economic implications of these results are finally discussed.
2017
Romer model; Belyakov point degeneracy; Double-pulse homoclinic orbit; Global indeterminacy
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11584/221775
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