Centre for Finance, Credit and Macroeconomics (CFCM)

CFCM 23/02: Dynamic investigations of an endogenous business cycle model with heterogeneous agents


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 piecewise linear systems and on border collision bifurcations we are able to provide a
comprehensive analysis of the dynamics

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Spiros Bougheas, Pasquale Commendatore, Laura Gardini and Ingrid Kubin


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Posted on Thursday 2nd March 2023

Centre for Finance, Credit and Macroeconomics

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