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A dynamic IS-LM business cycle model with two time delays in capital accumulation equation

✍ Scribed by Lujun Zhou; Yaqiong Li

Publisher: Elsevier Science
Year: 2009
Tongue: English
Weight: 449 KB
Volume: 228
Category: Article
ISSN: 0377-0427
DOI: 10.1016/j.cam.2008.09.004

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✦ Synopsis

In this paper, we analyze a augmented IS-LM business cycle model with the capital accumulation equation that two time delays are considered in investment processes according to Kalecki's idea. Applying stability switch criteria and Hopf bifurcation theory, we prove that time delays cause the equilibrium to lose or gain stability and Hopf bifurcation occurs.