On Outward-Looking Comparison Utility, Heterogenous Preferences and the Third Dimension : A Geometric Perspective

The difficulties associated with the appraisal of the determinacy properties of a three-dimensional dynamical system are circumvented by the introduction of a new geometrical argument. It first brings about a complete and easy-to-use typology of the eigenvalues moduli in discrete time three-dimensional dynamical systems and then provides a new apparatus for assessing from a geometrical standpoint the emergence of local bifurcations. The argument is first illustrated in an environment where outward-looking comparison utility may question the determinacy of the steady-state and subsequently used within a competitive monetary equilibrium with heterogeneous agents and financial constraints