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Business Cycles in a Two-Sided Altruism Model

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  • Hiroshi Fujiu

    (Department of Economics, Chiba Keizai University, 3-59-5 Todoroki, Inage, Chiba 263-0021, Japan)

Abstract

This study demonstrates that business cycles with complex periodic fluctuations may arise in an overlapping generations model with two-sided altruism. The structure of an equilibrium dynamical system strongly depends on the degree of altruism in the model. If either altruism of a generation to the parent or the child disappears, the study also demonstrates that complex periodic fluctuations never occur. In this sense, two-sided altruism is essential for a complex business cycle.

Suggested Citation

  • Hiroshi Fujiu, 2021. "Business Cycles in a Two-Sided Altruism Model," Mathematics, MDPI, vol. 9(17), pages 1-12, August.
    • Handle: RePEc:gam:jmathe:v:9:y:2021:i:17:p:2054-:d:622229
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    References listed on IDEAS

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