From Sunspots to Black Holes: singular dynamics in macroeconomic models

Brito, Paulo; Costa, Luis F.; Dixon, Huw

http://hdl.handle.net/10400.5/30519

Use this identifier to reference this record.

Name:	Description:	Size:	Format:
PBRITO.LCOSTA.HDIXON.2017.Chapter.pdf		405.85 KB	Adobe PDF	Download

Send Feedback

Authors

Brito, Paulo

Costa, Luis F.

Dixon, Huw

Abstract(s)

We present conditions for the emergence of singularities in DGE models. We distinguish between slow-fast and impasse singularity types, review geometrical methods to deal with both types of singularity and apply them to DGE dynamics. We find that impasse singularities can generate new types of DGE dynamics, in particular temporary determinacy/indeterminacy. We illustrate the different nature of the two types of singularities and apply our results to two simple models: the Benhabib and Farmer (1994) model and one with a cyclical fiscal policy rule

Keywords

Slow-Fast Singularities Impasse Singularities Macroeconomic Dynamics Temporary Indeterminacy

URI

http://hdl.handle.net/10400.5/30519

Citation

Brito, Paulo; Luís F. Costa and Huw Dixon .(2017). “From Sunspots to Black Holes: singular dynamics in macroeconomic models” in Sunspots and Non-Linear Dynamics, Studies in Economic Theory, Kazuo Nishimura, Alain Venditti and Nicholas C. Yannelis (Eds.), 31: Chapter 3: pp. 41- 70, Springer. 2017. (Search PDF in 2024).