Controlling Bifurcations in an OLG Economy with PAYG Pension Schemes

Bifurcation control refers to the task of designing a controller to modify the bifurcation properties of a given nonlinear system, thereby achieving some desirable dynamical behaviors. This paper deals with the controlling of bifurcations in an overlapping generation (OLG) economy with pay-as-you- go (PAYG) pension schemes. A brief overview is given of the basic OLG model with very complicated dynamics, such as bifurcations. By employing the washout filter controller, the complicated motions stem from the system can be controlled without changing the original properties. Finally, we show the effectiveness and feasibility of the developed methods in an OLG model with explicit functions.