Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups

Bibliographic Details
Main Author: Brito, Paulo
Publication Date: 2010
Other Authors: Costa, Luís F., Dixon, Huw
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10400.5/2316
Summary: We consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes, monopoly and oligopoly, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating the model may exhibit heteroclinic orbits connecting multiple equi¬libria. Small transitory changes in parameters can lead to large permanent effects and there can be a Rostovian poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. The paper applies recent results from applied math¬ematics for non-smooth dynamic systems.
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spelling Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markupsEndogenous MarkupsNon-Smooth DynamicsDiscontinuity Induced BifurcationsHeteroclinic OrbitsWe consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes, monopoly and oligopoly, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating the model may exhibit heteroclinic orbits connecting multiple equi¬libria. Small transitory changes in parameters can lead to large permanent effects and there can be a Rostovian poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. The paper applies recent results from applied math¬ematics for non-smooth dynamic systems.ISEG - Departamento de EconomiaRepositório da Universidade de LisboaBrito, PauloCosta, Luís F.Dixon, Huw2010-10-01T10:59:05Z20102010-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/2316engBrito, Paulo, Luís F. Costa e Huw Dixon. 2010. "Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups". Instituto Superior de Economia e Gestão - DE Working papers nº 14-2010/DE/UECE0874-4548info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-03-17T16:24:57Zoai:repositorio.ulisboa.pt:10400.5/2316Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T04:13:39.160698Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
title Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
spellingShingle Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
Brito, Paulo
Endogenous Markups
Non-Smooth Dynamics
Discontinuity Induced Bifurcations
Heteroclinic Orbits
title_short Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
title_full Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
title_fullStr Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
title_full_unstemmed Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
title_sort Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups
author Brito, Paulo
author_facet Brito, Paulo
Costa, Luís F.
Dixon, Huw
author_role author
author2 Costa, Luís F.
Dixon, Huw
author2_role author
author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Brito, Paulo
Costa, Luís F.
Dixon, Huw
dc.subject.por.fl_str_mv Endogenous Markups
Non-Smooth Dynamics
Discontinuity Induced Bifurcations
Heteroclinic Orbits
topic Endogenous Markups
Non-Smooth Dynamics
Discontinuity Induced Bifurcations
Heteroclinic Orbits
description We consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes, monopoly and oligopoly, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating the model may exhibit heteroclinic orbits connecting multiple equi¬libria. Small transitory changes in parameters can lead to large permanent effects and there can be a Rostovian poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. The paper applies recent results from applied math¬ematics for non-smooth dynamic systems.
publishDate 2010
dc.date.none.fl_str_mv 2010-10-01T10:59:05Z
2010
2010-01-01T00:00:00Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/2316
url http://hdl.handle.net/10400.5/2316
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Brito, Paulo, Luís F. Costa e Huw Dixon. 2010. "Non-smooth dynamics and multiple equilibria in a Cournt-Ramsey model with endogenous markups". Instituto Superior de Economia e Gestão - DE Working papers nº 14-2010/DE/UECE
0874-4548
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv ISEG - Departamento de Economia
publisher.none.fl_str_mv ISEG - Departamento de Economia
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron:RCAAP
instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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