Unlike linear ones, nonlinear business cycle models can generate sustained fluctuations even in the absence of shocks (e.g., via limit cycles/chaos). A popular approach to solving nonlinear models is perturbation methods. I show that, as typically implemented, these methods are incapable of...

This article proves that periodic trajectories are generically impossible in a class of continuous-time growth models that allow a locally indeterminate steady state. Those models reducible to the two-dimensional Lotka-Volterra system of equations constitute the class considered here. Knowledge...

This article proves that periodic trajectories are generically impossible in a class of continuous-time growth models that allow a locally indeterminate steady state. Those models reducible to the two-dimensional Lotka-Volterra system of equations constitute the class considered here. Knowledge...

This article examines the behaviour of a consumer diagnosed with diabetes. It is shown that the medical treatment of the disease creates incentives that make diabetic's consumption and wieght display cyclical patterns. One implication is that labour supply can be cyclical as well.

The optimal intertemporal use of forests is a traditional and extensively investigated topic with recent emphasis on sustainable uses. The political discussion about the clearing of tropical forests adds a topical, policy dimension to this investigation. This study shows that cyclical policies...

The heterogeneity of expectations among traders introduces an important non-linearity into the financial markets. In a series of papers, Brock and Hommes, propose to model economic and financial markets as adaptive belief systems. Asset price fluctuations in adaptive belief systems are...

This paper departs from the standard open-economy Ramsey model and introduces additional concerns for wealth, status and Easterlin's (2001) hypothesis that consumption changes, in particular increases, are important and not only the level. These extensions induce first of all interior steady...