Periodic Solution of a Nonlinear Economic Cycle Model with a Generic Investment Function

2021 ◽  
pp. 155-170
Author(s):  
Jun Zhao
Author(s):  
Firdos Karim ◽  
Sudipa Chauhan ◽  
Sumit Kaur Bhatia ◽  
Joydip Dhar

This paper deals with the amalgamated basic IS-LM business cycle model with Kaldor’s growth model to form an augmented model. Pertaining to substantial evidence, IS-LM model in paradigm with a specific economic extension (Kaldor-Kalecki Business cycle model in our case) provides an adept explanation of a developing but strong economy like that of our country. Occurring in the equation of capital accumulation, the two time delays are a result of the assumption in the investment function being both income and capital stock dependent in past period and maturity period. Investigating a model combined with capital accumulation is both interesting and important. From economist point of view, production without capital is impossible to even imagine. Moreover capital accumulation is impeccable to large-scale production, specialisation and creation of employment opportunities. In our model ‘I’ the investment function, ‘S’ the savings function and ‘L’ the demand for money are depending linearly on their arguments. We adhere to a linear model, contrary to the popular belief of non- linear models being the undisputed style for modern economics. The model is first shown to be mathematically and economically poised. The local stability of boundary and interior equilibrium points has been investigated. Three cases arise, pertaining to two time delays. System dynamics exhibits mutation under the influence of time delays and may clinch or discharge its local stability when subjected to the latter. Hopf bifurcation occurs when the delay parameter crosses a critical value.


2018 ◽  
Vol 2018 ◽  
pp. 1-12 ◽  
Author(s):  
Jun Zhao

The economic cycle has always been an important feature of the evolution of an economic system. In the presence of many uncertain factors, it appears in the manner of very complex nonlinearity and randomness. Based on the theory of stochastic nonlinear dynamics, a nonlinear economic cycle model with correlated random income disturbance is established. The probability density evolution of the nonlinear economic cycle model under random disturbance is numerically analyzed by using a path integration method. The analysis shows the high saving rate reduces the investment and improves the probabilities of low income and low income change rate. In order to achieve a higher income, the saving rate should be controlled to some reasonable small value. The nonlinearity of the economic cycle model increases the probabilities of high income and high income change rate, which can lead to the increase of income in a probabilistic sense. The increase of random income interference enhances the uncertainty of income. Meanwhile, the increase of correlated random income disturbance can lead to a nonsymmetric distribution of the probability distributions of income and income change rate. In such cases, the income is more difficult to forecast and control.


1966 ◽  
Vol 25 ◽  
pp. 197-222 ◽  
Author(s):  
P. J. Message

An analytical discussion of that case of motion in the restricted problem, in which the mean motions of the infinitesimal, and smaller-massed, bodies about the larger one are nearly in the ratio of two small integers displays the existence of a series of periodic solutions which, for commensurabilities of the typep+ 1:p, includes solutions of Poincaré'sdeuxième sortewhen the commensurability is very close, and of thepremière sortewhen it is less close. A linear treatment of the long-period variations of the elements, valid for motions in which the elements remain close to a particular periodic solution of this type, shows the continuity of near-commensurable motion with other motion, and some of the properties of long-period librations of small amplitude.To extend the investigation to other types of motion near commensurability, numerical integrations of the equations for the long-period variations of the elements were carried out for the 2:1 interior case (of which the planet 108 “Hecuba” is an example) to survey those motions in which the eccentricity takes values less than 0·1. An investigation of the effect of the large amplitude perturbations near commensurability on a distribution of minor planets, which is originally uniform over mean motion, shows a “draining off” effect from the vicinity of exact commensurability of a magnitude large enough to account for the observed gap in the distribution at the 2:1 commensurability.


2013 ◽  
Author(s):  
Marco Ferrara ◽  
Sara Viotti ◽  
Daniela Converso ◽  
Valentina Trotta ◽  
Gloria Guidetti ◽  
...  

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