𝔖 Bobbio Scriptorium
✦   LIBER   ✦

The origin of cyclical motion in dynamic economic models

✍ Scribed by Michael J.P. Magill

Book ID
104293474
Publisher
Elsevier Science
Year
1979
Tongue
English
Weight
793 KB
Volume
1
Category
Article
ISSN
0165-1889

No coin nor oath required. For personal study only.

✦ Synopsis

This paper examines the origin of cyclical motion in a class of deterministic infinite horizon problems that arise in dynamic economics. For this class of problems the optimal solution converges to a unique equilibrium point. Conditions are given under which the motion in a β€’ neighbourhood of the equilibrium point is cyclical. These conditions involve certain asymmetric stock-flow interaction terms that arise in the local equations of motion about the equilibrium point. The results are used to show how cyclical motion can arise in a rational expectations equilibrium for a competitive industry.

πŸ“œ SIMILAR VOLUMES

Dynamical models in economics: The case
Dynamical models in economics: The case of inflation
✍ R.P.J. Perazzo; S.L. Reich; J. Schvarzer; M.A. Virasoro πŸ“‚ Article πŸ“… 1997 πŸ› John Wiley and Sons 🌐 English βš– 101 KB πŸ‘ 2 views

We discuss a fully dynamical microeconomic model where inflation appears as the response of an unstable system to stochastic noise and/or time discretisation of the dynamics. In the model economic agents fix prices and production volumes following simple, robust, suboptimal rules. A global parameter

Time to build in dynamics of economic mo
Time to build in dynamics of economic models II: models of economic growth
✍ Marek SzydΕ‚owski πŸ“‚ Article πŸ“… 2003 πŸ› Elsevier Science 🌐 English βš– 132 KB

In this paper we investigate the relationship between the time delay for building investment goods and cycles under the conditions of general equilibrium. We introduce a delay parameter in the spirit of Kalecki into the simplest class of models of growth theory. They encompass a wide range of models

Bayes model averaging of cyclical decomp
Bayes model averaging of cyclical decompositions in economic time series
✍ Richard Kleijn; Herman K. van Dijk πŸ“‚ Article πŸ“… 2006 πŸ› John Wiley and Sons 🌐 English βš– 244 KB

## Abstract A flexible decomposition of a time series into stochastic cycles under possible non‐stationarity is specified, providing both a useful data analysis tool and a very wide model class. A Bayes procedure using Markov Chain Monte Carlo (MCMC) is introduced with a model averaging approach wh