EXCITABILITY AND COMPLEX MIXED-MODE OSCILLATIONS IN STOCHASTIC BUSINESS CYCLE MODEL

2016 ◽  
Vol 19 (01n02) ◽  
pp. 1550027
Author(s):  
IRINA BASHKIRTSEVA ◽  
ALEXANDER PISARCHIK ◽  
LEV RYASHKO ◽  
TATYANA RYAZANOVA
Keyword(s):  
Business Cycle ◽  
Phase Portrait ◽  
Large Amplitude ◽  
Mixed Mode ◽  
Deterministic Model ◽  
Cycle Model ◽  
Mixed Mode Oscillations ◽  
Sensitivity Functions ◽  
Business Cycle Model ◽  
Stochastic Oscillations

Stochastically forced business cycle model is considered. We study a phenomenon of the noise-induced generation of complex mixed-mode oscillations in zones where the deterministic model exhibits a single attractor (equilibrium or limit cycle). A probabilistic mechanism of the transition from unimodal oscillations to the intermittency of small- and large-amplitude stochastic oscillations is investigated on the base of the stochastic sensitivity functions technique. We show that such intermittency, connected with the nonuniformity of phase portrait, can be parametrically analyzed by the confidence domains method.

scholarly journals Firing costs in a business cycle model with endogenous separations

2015 ◽  
Vol 42 (3) ◽  
pp. 499-518
Author(s):  
Dennis Wesselbaum
Keyword(s):  
Business Cycle ◽  
Empirical Evidence ◽  
Employment Protection ◽  
Cycle Model ◽  
Beveridge Curve ◽  
Flow Rates ◽  
Content Type ◽  
Firing Costs ◽  
Cross Country ◽  
Business Cycle Model

Purpose – The purpose of this paper is to introduce productivity-dependent firing costs into an otherwise standard endogenous separations matching model. The authors suggest an alternative to the standard fix cost approach and account for empirical evidence emphasizing that firing costs vary across workers. The authors show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, the authors present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates. Design/methodology/approach – The authors begin the analysis at the intersection of labor and product markets. For this purpose, the authors derive a real business cycle model with search and matching frictions and endogenous separations. The authors enrich this set-up by introducing productivity-dependent firing costs. Findings – The authors show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, the authors present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates. Originality/value – This paper introduces productivity-dependent firing costs into an otherwise standard endogenous separations matching model. The authors suggest an alternative to the standard fix cost approach and account for empirical evidence emphasizing that firing costs vary across workers. The authors show that the model with firing costs outperformes the model without firing costs and replicates the empirical facts fairly well. Furthermore, the authors present cross-country evidence that countries with stricter employment protection have a weaker Beveridge curve relation and surprisingly more volatile job flow rates.

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