Endogenous cycles in discrete symmetric multisector optimal growth models

Abstract

This paper discusses the asymptotic stability of the steady state in discrete symmetric multisector optimal growth models. Using a variational method, we provide a new proposition which gives some conditions ensuring the local saddle point property. A characterization of the bound above which the steady state is locally unstable is also proposed in terms of the indirect utility function concavity properties. On this basis, some sufficient conditions for the existence of competitive cycles are stated. We thus prove the existence of a Flip bifurcation.