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

29 Pages Posted: 20 Apr 2005

Date Written: December 20, 2004

Abstract

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.

Keywords: Local indeterminacy, bifurcation, three-dimensional dynamical systems

JEL Classification: E32, O41

Suggested Citation

Barinci, Jean-Paul and Drugeon, Jean-Pierre, On Outward-Looking Comparison Utility, Heterogenous Preferences and the Third Dimension: A Geometric Perspective (December 20, 2004). Available at SSRN: https://ssrn.com/abstract=703786 or http://dx.doi.org/10.2139/ssrn.703786

Jean-Paul Barinci

Université d'Évry ( email )

F-91025 Evry Cedex
France

Jean-Pierre Drugeon (Contact Author)

CNRS-Eurequa ( email )

3, rue Michel-Ange
Paris cedex 16, 75794
FRANCE

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