Business Cycles in a Two-Sided Altruism Model
This study demonstrates that business cycles with complex periodic fluctuations may arise in an overlapping generations model with two-sided altruism. The structure of an equilibrium dynamical system strongly depends on the degree of altruism in the model. If either altruism of a generation to the p...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-08-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/9/17/2054 |
| Summary: | This study demonstrates that business cycles with complex periodic fluctuations may arise in an overlapping generations model with two-sided altruism. The structure of an equilibrium dynamical system strongly depends on the degree of altruism in the model. If either altruism of a generation to the parent or the child disappears, the study also demonstrates that complex periodic fluctuations never occur. In this sense, two-sided altruism is essential for a complex business cycle. |
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| ISSN: | 2227-7390 |