Updating Wealth in an Asset Pricing Model with Heterogeneous Agents

Figure 3

One-dimensional bifurcation diagram of the state variable 𝑤_𝑡 with respect to 𝛽 for the initial condition 𝑥₀=0.9, 𝑚₀=0.8 and 𝑤₀=0.8 and parameter values 𝛼=1, 𝜆=1, 𝜎²=1, 𝑟=0.02, 𝐶=0.5. In panel (a) 𝑎=0.5, in panel (b) 𝑎=0.9, in panel (c) 𝑎=1.2 and in panel (d) 𝑎=2.

(a)

(b)

(c)

(d)