Venditti

Publications

Destabilizing balanced-budget consumption taxes in multi-sector economiesJournal articleKazuo Nishimura, Carine Nourry, Thomas Seegmuller and Alain Venditti, International Journal of Economic Theory, Volume 9, Issue 1, pp. 113-130, 2013

We examine the impact of balanced-budget consumption taxes on the existence of expectations-driven business cycles in two-sector economies with infinitely-lived households. We prove that, whatever the relative capital intensity difference across sectors, aggregate instability can occur if the consumption tax rate is not too low. Moreover, we show through a numerical exercise based on empirically plausible tax rates that endogenous business-cycle fluctuations may be a source of instability for all OECD countries, including the US.

Local indeterminacy in continuous-time models: the role of returns to scaleJournal articleJean-Philippe Garnier, Kazuo Nishimura and Alain Venditti, Macroeconomic Dynamics, Volume 17, Issue 2, pp. 326-355, 2013

The aim of this paper is to discuss the role of the returns to scale at the private and social levels on the local determinacy properties of the steady state in a continuous-time two-sector economy with sector-specific externalities. First we show that when labor is inelastic, for any configuration of the returns to scale, local indeterminacy is obtained if there is a capital intensity reversal between the private and the social levels. Second, we prove that when labor is infinitely elastic, saddle-point stability is obtained as soon as the investment good sector has constant social returns while local indeterminacy arises if the investment good sector has increasing social returns, provided the consumption good is labor intensive at the social level and the elasticity of intertemporal substitution in consumption admits intermediary values. Finally, we show that local indeterminacy requires a low elasticity of labor when the investment good has constant social returns, but requires either low enough or large enough elasticity of labor when the investment good has increasing social returns.

Nonlinear Dynamics in Equilibrium Models: Chaos, Cycles and IndeterminacyBookSpringer Books, John Stachurski, Alain Venditti and Makoto Yano (Eds.), 2012-07, 450 pages, Springer, 2012

Optimal growth theory studies the problem of efficient resource allocation over time, a fundamental concern of economic research. Since the 1970s, the techniques of nonlinear dynamical systems have become a vital tool in optimal growth theory, illuminating dynamics and demonstrating the possibility of endogenous economic fluctuations. Kazuo Nishimura's seminal contributions on business cycles, chaotic equilibria and indeterminacy have been central to this development, transforming our understanding of economic growth, cycles, and the relationship between them. The subjects of Kazuo's analysis remain of fundamental importance to modern economic theory. This book collects his major contributions in a single volume. Kazuo Nishimura has been recognized for his contributions to economic theory on many occasions, being elected fellow of the Econometric Society and serving as an editor of several major journals.

Endogenous Business Cycles In Overlapping-Generations Economies With Multiple Consumption GoodsJournal articleCarine Nourry and Alain Venditti, Macroeconomic Dynamics, Volume 16, Issue S1, pp. 86-102, 2012

No abstract is available for this item.

Weak concavity properties of indirect utility functions in multisector optimal growth modelsJournal articleAlain Venditti, International Journal of Economic Theory, Volume 8, Issue 1, pp. 13-26, 2012

No abstract is available for this item.

Business cycle fluctuations and learning-by-doing externalities in a one-sector modelJournal articleHippolyte d’Albis, Emmanuelle Augeraud-Veron and Alain Venditti, Journal of Mathematical Economics, Volume 48, Issue 5, pp. 295-308, 2012

We consider a one-sector Ramsey-type growth model with inelastic labor and learning-by-doing externalities based on cumulative gross investment (cumulative production of capital goods), which is assumed, in accordance with Arrow (1962), to be a better index of experience than the average capital stock. We prove that a slight memory effect characterizing the learning-by-doing process is enough to generate business cycle fluctuations through a Hopf bifurcation leading to stable periodic orbits. This is obtained for reasonable parameter values, notably for both the amount of externalities and the elasticity of intertemporal substitution. Hence, contrary to all the results available in the literature on aggregate models, we show that endogenous fluctuations are compatible with a low (in actual fact, zero) wage elasticity of the labor supply.

Introduction To Macroeconomic Dynamics Special Issue In Honor Of Kazuo Nishimura: Nonlinear Dynamics In Equilibrium ModelsJournal articleJohn Stachurski, Alain Venditti and Makoto Yano, Macroeconomic Dynamics, Volume 16, Issue S1, pp. 1-4, 2012

Over the past three decades, analysis of dynamics has come to the forefront of macroeconomic theory. A key impetus for progress on this front has been the connections developed between equilibrium growth theory, on one hand, and the field of nonlinear dynamics, on the other. Kazuo Nishimura's work has been at the center of these advances, and the lines of research he initiated remain an exciting area of study for young researchers with strong technical skills.

Introduction to "Nonlinear Dynamics in Equilibrium Models. Chaos, Cycles and Indeterminacy. Selected Papers of Kazuo Nishimura"Book chapterAlain Venditti, In: Nonlinear Dynamics in Equilibrium Models. Chaos, Cycles and Indeterminacy. Selected Papers of Kazuo Nishimura, Alain Venditti, John Stachurski and Makoto Yano (Eds.), 2012, pp. 1-12, Springer-Verlag, 2012
Introduction to "Nonlinear Dynamics in Equilibrium Models. Chaos, Cycles and Indeterminacy. Selected Papers of Kazuo Nishimura"Book chapterAlain Venditti, In: Nonlinear Dynamics in Equilibrium Models. Chaos, Cycles and Indeterminacy. Selected Papers of Kazuo Nishimura, Alain Venditti, John Stachurski and Makoto Yano (Eds.), 2012, pp. 1-12, Springer-Verlag, 2012
Local indeterminacy under dynamic efficiency in a two-sector overlapping generations economyJournal articleCarine Nourry and Alain Venditti, Journal of Mathematical Economics, Volume 47, Issue 2, pp. 164-169, 2011

Abstract 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 efficiency 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 fiscal 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 (1986) influential conclusion is compatible with positive elasticities of capital-labor substitution in a two-sector OLG economy.