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

Detalhes bibliográficos
Autor(a) principal: Brito, Paulo
Data de Publicação: 2013
Outros Autores: Costa, Luís F., Dixon, Huw
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
Texto Completo: http://hdl.handle.net/10400.5/30162
Resumo: We consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes, monopolistic and Cournotian monopolistic competition, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating it may exhibit heteroclinic orbits connecting multiple equilibria. Small transitory changes in parameters can lead to large permanent effects and there can be a poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. We apply results from the mathematics of non-smooth dynamic systems, which provide a more general frame-work for understanding regime switching..
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spelling Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markupsEndogenous MarkupsRegime SwitchDiscontinuity-Induced BifurcationsWe consider a Ramsey model with a continuum of Cournotian industries where free entry generates an endogenous markup. The model produces two different regimes, monopolistic and Cournotian monopolistic competition, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating it may exhibit heteroclinic orbits connecting multiple equilibria. Small transitory changes in parameters can lead to large permanent effects and there can be a poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. We apply results from the mathematics of non-smooth dynamic systems, which provide a more general frame-work for understanding regime switching..ElsevierRepositório da Universidade de LisboaBrito, PauloCosta, Luís F.Dixon, Huw2024-02-20T11:53:44Z20132013-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/30162engBrito, Paulo; Luís F. Costa and Huw Dixon .(2013). “Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups”. Journal of Economic Dynamics and Control Volume 37, Issue 11: pp. 2287-2306. (search PDF in 2024).0165-1889doi.org/10.1016/j.jedc.2013.05.014info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-02-25T01:35:23Zoai:www.repository.utl.pt:10400.5/30162Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T03:11:25.016336Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse
dc.title.none.fl_str_mv Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups
title Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups
spellingShingle Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups
Brito, Paulo
Endogenous Markups
Regime Switch
Discontinuity-Induced Bifurcations
title_short Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups
title_full Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups
title_fullStr Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups
title_full_unstemmed Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups
title_sort Non-smooth dynamics and multiple equilibria in a Cournot–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
Regime Switch
Discontinuity-Induced Bifurcations
topic Endogenous Markups
Regime Switch
Discontinuity-Induced Bifurcations
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, monopolistic and Cournotian monopolistic competition, resulting in non-smooth dynamics. We analyze the global dynamics of the model, demonstrating it may exhibit heteroclinic orbits connecting multiple equilibria. Small transitory changes in parameters can lead to large permanent effects and there can be a poverty trap separating a low-capital and high-markup equilibrium from a high-capital low-markup equilibrium. We apply results from the mathematics of non-smooth dynamic systems, which provide a more general frame-work for understanding regime switching..
publishDate 2013
dc.date.none.fl_str_mv 2013
2013-01-01T00:00:00Z
2024-02-20T11:53:44Z
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/10400.5/30162
url http://hdl.handle.net/10400.5/30162
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Brito, Paulo; Luís F. Costa and Huw Dixon .(2013). “Non-smooth dynamics and multiple equilibria in a Cournot–Ramsey model with endogenous markups”. Journal of Economic Dynamics and Control Volume 37, Issue 11: pp. 2287-2306. (search PDF in 2024).
0165-1889
doi.org/10.1016/j.jedc.2013.05.014
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 Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron:RCAAP
instname_str Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
instacron_str RCAAP
institution RCAAP
reponame_str Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
collection Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
repository.name.fl_str_mv Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação
repository.mail.fl_str_mv
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