Borrowing constraints and complex dynamics in an OLG framework
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Borrowing constraints and complex dynamics in an OLG framework. / Assenza, Tiziana; Agliari, Anna; Delli Gatti, Domenico; Santoro, Emiliano.
In: Journal of Economic Behavior & Organization, Vol. 72, No. 2, 2009, p. 656-669.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Borrowing constraints and complex dynamics in an OLG framework
AU - Assenza, Tiziana
AU - Agliari, Anna
AU - Delli Gatti, Domenico
AU - Santoro, Emiliano
N1 - JEL classification: E32, E52
PY - 2009
Y1 - 2009
N2 - 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.
AB - 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.
KW - Faculty of Social Sciences
KW - credit cycles
KW - monetary policy
U2 - 10.1016/j.jebo.2009.07.011
DO - 10.1016/j.jebo.2009.07.011
M3 - Journal article
VL - 72
SP - 656
EP - 669
JO - Journal of Economic Behavior & Organization
JF - Journal of Economic Behavior & Organization
SN - 0167-2681
IS - 2
ER -
ID: 15999517