Sunspots and Non-Linear Dynamics: Essays in Honor of Jean-Michel Grandmont (Studies in Economic Theory Book 31)

This book presents the state-of-the-art in non-linear dynamics and sunspots. These two topics have been the core of an international conference on instability and public policies in a globalized world, organized at Aix-Marseille School of Economics and GREQAM in honor of Jean-Michel Grandmont. He has made significant contributions on general equilibrium theory, monetary theory, learning, aggregation, non-linear dynamics and sunspots. This book assembles contributions by Jean-Michel Grandmont's colleagues, students and friends that have been influenced by his works and that are at the frontier of research in this domain today. Front Matter....Pages i-vi Introduction....Pages 1-11 Front Matter....Pages 13-13 Assessing the Local Stability Properties of Discrete Three-Dimensional Dynamical Systems: A Geometrical Approach with Triangles and Planes and an Application with Some Cones....Pages 15-39 From Sunspots to Black Holes: Singular Dynamics in Macroeconomic Models....Pages 41-70 Sunspot Fluctuations in Two-Sector Models with Variable Income Effects....Pages 71-96 From Self-Fulfilling Mistakes to Behavioral Learning Equilibria....Pages 97-123 Regime-Switching Sunspot Equilibria in a One-Sector Growth Model with Aggregate Decreasing Returns and Small Externalities....Pages 125-146 Equilibrium Dynamics in a Two-Sector OLG Model with Liquidity Constraint....Pages 147-174 Homoclinic Orbit and Stationary Sunspot Equilibrium in a Three-Dimensional Continuous-Time Model with a Predetermined Variable....Pages 175-200 Front Matter....Pages 201-201 Rational Land and Housing Bubbles in Infinite-Horizon Economies....Pages 203-230 The Stabilizing Virtues of Monetary Policy on Endogenous Bubble Fluctuations....Pages 231-257 Can Consumption Taxes Stabilize the Economy in the Presence of Consumption Externalities?....Pages 259-278 Front Matter....Pages 279-279 Uncertainty and Sentiment-Driven Equilibria....Pages 281-304 Technological Progress, Employment and the Lifetime of Capital....Pages 305-337 Nonbalanced Growth in a Neoclassical Two-Sector Optimal Growth Model....Pages 339-359 Front Matter....Pages 361-361 An Argument for Positive Nominal Interest....Pages 363-385 Winners and Losers from Price-Level Volatility: Money Taxation and Information Frictions....Pages 387-402 A Note on Information, Trade and Common Knowledge....Pages 403-409