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Investment limit cycles in a socialist economy

✍ Scribed by A. Simonovits

Publisher
Springer US
Year
1991
Tongue
English
Weight
893 KB
Volume
24
Category
Article
ISSN
1573-9414

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✦ Synopsis

The present paper generalizes a linear cycle model of the socialist economy studied in Simonovits (1990): the two equations describing the reproduction of the tensions are retained, while the two linear reaction equations are confined to the interval of lower and upper bounds; outside these intervals the decisions are given by the corresponding bounds (cf. Hicks, 1950).

The main result is the following: If a certain linear system of equations and inequalities has a solution, then there exists a limit cycle with period 4, the amplitude of which is independent of the initial states.

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