The local bifurcation of Ramsey equilibrium (Q1341524)

The authors study the existence of periodic solutions in a one-sector neoclassical capital accumulation model under borrowing constraints with infinitely-lived heterogeneous agents. A dynamical system representing an equilibrium profile with only the most patient agent holding capital is analyzed when capital income is not an increasing function of total capital. Conditions for the linear approximation system at a steady state to have an eigenvalue of \(-1\) are found. Conditions for a stable flip bifurcation are shown to hold at the steady state.