Center projections for smooth difference equations of mixed type (Q2474061)

The authors study a class of mixed type difference equations, whose solutions additionally satisfy an associated differential equation of mixed type with advanced and retarded arguments. Such equations appear in the area of economic research, where it is one of the main goals to study the dynamical behaviour of the interest rate and to establish the existence of periodic cycles for this rate. The authors therefore construct a smooth, locally invariant center manifold that captures the dynamic of all solutions sufficiently close to a steady state. By an application of the Hopf bifurcation theorem they finally can prove the existence of periodic solutions, whose significance is discussed in a model of economic research.