Dynamic Investigations of an Endogenous Business Cycle Model with Heterogeneous Agents

Bougheas, Spiros; Commendatore, Pasquale; Gardini, Laura; Kubin, Ingrid

Abstract

We introduce agents'heterogeneity into a model of endogenous business cycles, in which agents can invest either in 'good'projects that contribute to future capital formation, or in 'bad' projects without that property. The resulting map involves three distinct regimes, two of which we linearize. Using theoretical results on piece-wise linear systems and on border collision bifurcations, we are able to provide a thourough analysis of the dynamics.

Citation

Bougheas, S., Commendatore, P., Gardini, L., & Kubin, I. (2023). Dynamic Investigations of an Endogenous Business Cycle Model with Heterogeneous Agents. Computational Economics, https://doi.org/10.1007/s10614-023-10492-2

• Journal Article Type: Article
• Acceptance Date: Sep 28, 2023
• Online Publication Date: Nov 4, 2023
• Publication Date: Nov 4, 2023
• Deposit Date: Oct 3, 2023
• Publicly Available Date: Nov 5, 2024
• Journal: Computational Economics
• Print ISSN: 0927-7099
• Electronic ISSN: 1572-9974
• Publisher: Springer Verlag
• Peer Reviewed: Peer Reviewed
• DOI: https://doi.org/10.1007/s10614-023-10492-2
• Keywords: business cycles; heterogeneous agents; piecewise linear systems; bifurcations JEL: C61; E32
• Public URL: https://nottingham-repository.worktribe.com/output/25673573
• Publisher URL: https://link.springer.com/article/10.1007/s10614-023-10492-2
• Additional Information: Accepted: 28 September 2023; First Online: 4 November 2023; : ; : The authors have no relevant financial or non-financial interests to disclose.