Local indeterminacy in two-sector overlapping generations models

In this paper, we consider a two-sector two-periods overlapping generations model with inelastic labor, consumption in both periods of life and homothetic CES preferences. We assume in a first step that the consumption levels are gross substitutes and the consumption good is capital intensive. We prove that when dynamic efficiency holds, the occurrence of sunspot fluctuations requires low enough values for the sectoral elasticities of capital-labor substitution. On the contrary, under dynamic inefficiency, local indeterminacy may be obtained without any restriction on the input substitutability properties. Assuming in a second step that gross substitutability in consumption does not hold, we show that sunspot fluctuations arise under dynamic efficiency without any restriction on the sign of the capital intensity difference across sectors and provided the sectoral elasticities of capital-labor substitution admit intermediary values.Two-sector OLG model, social production function, dynamic (in)efficiency, gross substitutability in consumption, local indeterminacy, sunspot fluctuations

The role of the wealth distribution on output volatility

We explore the link between wealth inequality and business cycle fluctuations in a two-sector neoclassical growth model with endogenous labor and heterogeneous agents. Assuming that wealth inequality is described by the distribution of shares of capital, we show that in the most plausible situations wealth equality is a stabilizing factor. In particular, when wealth is Pareto distributed and preferences generate non-linear absolute risk tolerance indices, a rise in the Gini index may only be associated to a rise in volatility. When individual preferences are such that the individual absolute risk tolerance indices are linear, as with HARA utility, even a low level of taste heterogeneity ensures that a rise in inequality may not reduce volatility, and this independently of the wealth distribution. Finally, we note that such a clear result is at odd with the existing related literature.

Local and global indeterminacy in two-sector models of endogenous growth

In this paper we consider a two-sector endogenous growth model where the productions of the final good and human capital require economy-wide external effects. Assuming constant returns to scale at the private and social levels, we show that local and global indeterminacy of equilibrium paths are compatible with any values for the elasticity of intertemporal substitution in consumption and any sign for the capital intensity difference across the two sectors.Two-sector model, endogenous growth, economy-wide externalities, local and global indeterminacy

The role of the wealth distribution on output volatility

We explore the link between wealth inequality and business cycle fluctuations in a two-sector neoclassical growth model with endogenous labor and heterogeneous agents. Assuming that wealth inequality is described by the distribution of shares of capital, we show that in the most plausible situations wealth equality is a stabilizing factor. In particular, when wealth is Pareto distributed and preferences generate non linear absolute risk tolerance indices, a rise in the Gini index may only be associated to a rise in volatility.When individual preferences are such that the individual absolute risk tolerance indices are linear, as with HARA utility, even a low level of taste heterogeneity ensures that a rise in inequality may not reduce volatility, and this independently of the wealth distribution.Finally, we note that such a clear result is at odd with the existing related literature.Wealth Inequality, Pareto distribution, Gini index, Elastic Labor Supply, Macroeconomic Volatility, Endogenous Equilibrium Business Cycles.

Local indeterminacy under dynamic efficiency in a two-sector overlapping generations economy

We consider a two-sector two-periods overlapping generations model with inelastic labor, consumption in both periods of life and homothetic CES preferences. Assuming gross substitutability and a capital intensive consumption good, we prove that when dynamic eciency holds, local indeterminacy and sunspot fluctuations occur with low enough values for the sectoral elasticities of capital-labor substitution and we illustrate this finding within a standard example. This result shows that some scale policy rules can prevent the existence of business-cycle fluctuations in the economy by driving it to the optimal steady state as soon as it is announced, and thus shows that Reichlin's [9] influential conclusion is a robust property in a two-sector OLG economy.Two-sector OLG model, dynamic efficiency, gross substitutability in consumption, local indeterminacy, stabilization policy

Functionalized platinum nanoparticles with surface charge trigged by pH: synthesis, characterization and stability studies

In this work, the synthesis and characterization of functionalized platinum nanoparticles (PtNPs) have been investigated. PtNPs were obtained by a wet redox procedure using 2-diethylaminoethanethiol hydrochloride (DEA) as capping agent. By varying the Pt/thiol molar ratio, monodispersed and stable particles with diameters in the range of 3-40 nm were isolated. The amino functionality allows neutral particles to be obtained in basic water solution and positive charged nanoparticles in neutral or acidic water solution (pH 7-2), as confirmed by DLS and ζ-potential measurements. FTIR spectroscopy, FE-SEM, DLS and ζ-potential measurements confirmed the size and showed long term water stability (up to three months) of the colloidal system

Beta-blokers in patients with cirrhosis and infection: don't blame too soon.

We found that PPI-users had a higher rate and BBs-users a lower rate of infections. The lower infection rate and better prognosis of BB-users can not be attributed, as suggested by Schiavon et al., to a higher proportion of variceal bleeding in this group; in fact, the large majority of patients hospitalized for bleeding were excluded from the study as they came to our ward already on systemic antibiotic treatment (which is usually started in the Emergency room) and this would have represented a confounding factor. Only few patients with variceal bleeding were included: they developed bleeding after enrolment and were equally distributed between those taking and not taking BBs. Following the recent debate about the ‘therapeutic window’ of BBs in cirrhotic patients (2–4), we were also interested in evaluating possible harmful effects of BBs in cirrhotic patients with infections. This was a secondary aim of our study and we certainly recognize that the study was underpowered for this purpose