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Self-generated fertility waves in a non-linear continuous overlapping generations model.

G Feichtinger, G Sorger

    Journal of Population Economics
    |December 1, 1989
    PubMed
    Summary
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    This study extends the Easterlin theory to a continuous-time model, revealing the existence of economic cycles and their period length. This research advances our understanding of economic dynamics across different age groups.

    Area of Science:

    • Economics
    • Mathematical Economics
    • Economic Cycles

    Background:

    • The Easterlin theory, particularly Samuelson's simplified version, has been influential in understanding economic cycles.
    • Previous models often utilized discrete-time approaches, limiting insights into cycle dynamics.

    Purpose of the Study:

    • To extend Samuelson's simplified Easterlin theory into a continuous-time framework.
    • To analyze economic cycles within a model incorporating three distinct age groups.
    • To determine the period length of these economic cycles.

    Main Methods:

    • Development of a continuous-time model based on Samuelson's Easterlin theory.
    • Application of qualitative theory of nonlinear differential equations.
    • Analysis of a three-age-group economic system.
    Keywords:
    Age FactorsDemographic FactorsEasterlin HypothesisEconomic FactorsFamily And HouseholdFamily CharacteristicsFertilityGenerationsIncomeMathematical ModelMicroeconomic FactorsModels, TheoreticalPopulationPopulation CharacteristicsPopulation DynamicsResearch MethodologySocioeconomic FactorsSocioeconomic StatusTime Factors

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    Main Results:

    • Demonstrated the existence of Easterlin-type cycles within the continuous-time model.
    • Provided insights into the period length of economic cycles, a feature not readily available in discrete-time models.
    • The continuous-time approach facilitates a more nuanced understanding of cycle dynamics.

    Conclusions:

    • The continuous-time extension of the Easterlin theory is a viable framework for studying economic cycles.
    • This model offers a more detailed analysis of cycle characteristics, including their duration.
    • The findings contribute to the theoretical understanding of macroeconomic fluctuations and age-group dynamics.