The Pasinetti-Solow Growth Model with Optimal SavingBehaviour: A Local Bifurcation Analysis

摘要

We present a discrete time version of the Pasinetti-Solow economic growth model. Workers and capitalists are assumed to save on the basis of rational choices. Workers face a finite time horizon and base their consumption choices on a life-cycle motive, whereas capitalists behave like an infinitely-lived dy-nasty. The accumulation of both capitalists' and workers' wealth through time is reduced to a two-dimensional map whose local asymptotic stability prop-erties are studied. Various types of bifurcation emerge (flip, Neimark-Sacker, saddle-node and transcritical): a precondition for chaotic dynamics.