Following J. Benhabib, K. Nishimura, T. Shigoka, 2008, in this paper we show how to construct a sunspot equilibrium near a steady state (resp. a closed orbit) in a continuous time economic model. We consider the case of a non Kaldorian-type economies for a tree-dimensional IS-LM model, as formulated by U. Neri and B. Venturi , 2007, and G. Bella, P. Mattana and B. Venturi, 2013. The system has a steady state with two stable and one unstable roots and a two-dimensional manifold closed orbit on which it is asymptotically stable, and the two-dimensional manifold is well located in an ambient space (a determinate parameters set). In our analysis we confirm that, as shown in literature, the construction of rational sunspot equilibrium comes from indeterminacy globally results. In other words, it could be done as a randomization over different equilibrium trajectories or equilibria, (as closed orbits). JEL classification C62, E32, O41.

Sunspots in Endogenous Growth Two-Sector Models

VENTURI, BEATRICE;Pirisinu A.
2015-01-01

Abstract

Following J. Benhabib, K. Nishimura, T. Shigoka, 2008, in this paper we show how to construct a sunspot equilibrium near a steady state (resp. a closed orbit) in a continuous time economic model. We consider the case of a non Kaldorian-type economies for a tree-dimensional IS-LM model, as formulated by U. Neri and B. Venturi , 2007, and G. Bella, P. Mattana and B. Venturi, 2013. The system has a steady state with two stable and one unstable roots and a two-dimensional manifold closed orbit on which it is asymptotically stable, and the two-dimensional manifold is well located in an ambient space (a determinate parameters set). In our analysis we confirm that, as shown in literature, the construction of rational sunspot equilibrium comes from indeterminacy globally results. In other words, it could be done as a randomization over different equilibrium trajectories or equilibria, (as closed orbits). JEL classification C62, E32, O41.
2015
9786185180003
Multiple steady states; Oscillating solutions; Sunspot equilibrium
File in questo prodotto:
File Dimensione Formato  
Proceedings CHAOS 2015 Venturi Pirisinu.pdf

accesso aperto

Descrizione: Articolo principale
Tipologia: versione editoriale
Dimensione 8.96 MB
Formato Adobe PDF
8.96 MB Adobe PDF Visualizza/Apri

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11584/59934
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? ND
social impact