Deficits and cycles
type: Item
instance of: scholarly article
title: Deficits and cycles
zbMATH Open document ID: 0606.90025
DOI: 10.1016/0022-0531(86)90008-6
author: Roger E. A. Farmer
published in: Journal of Economic Theory
publication date: 1986-01-01T00:00:00Z
review text: The paper presents two simple examples of nonlinear macro-economic cycle models in which a Hopf bifurcation may occur at a critical point in a real-valued model parameter interval. The underlying model is characterized by functions \(A_{\mu}\), \(\phi_{\mu}\), \(k_{\mu}\), indexed by a real parameter \(\mu\) : \(A_{\mu}(t+1)=A_{\mu}(\phi_{\mu}(R(t))\), \(R(t+1))\), \(k_{\mu}(t+1)=k_{\mu}(R(t+1))\), where \(A_{\mu}(t)\) represents asset demand at time t, R(t) represents the gross real rate of asset returns between time t-1 and time t, and \(k_{\mu}(t)\) represents capital demand by firms. Competitive equilibria are the solutions to the difference equation \(A_{\mu}(t+1)-k_{\mu}(t+1)=R(t)(A_{\mu}(t)-k_{\mu}(t))\), with certain initial conditions.
reviewed by: Mogens Niss
Mathematics Subject Classification ID: 91B62
Mathematics Subject Classification ID: 91B50
zbMATH DE Number: 3980854
zbMATH Keywords: periodic equilibria
zbMATH Keywords: nonlinear macro-economic cycle models
zbMATH Keywords: Hopf bifurcation
MaRDI profile type: Publication
full work available at URL: 0022-0531(86)90008-6
OpenAlex ID: W2071312395
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description: scientific article; zbMATH DE number 3980854