Limit cycles in dynamic economic systems (Q684781)

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Limit cycles in dynamic economic systems
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    Limit cycles in dynamic economic systems (English)
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    6 October 1993
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    The paper is `a survey on the appearance of stable limit cycles' (from the author's introduction) `in economics and management science', the `presentation is not exhaustive'. The following models are covered: 1. advertising, 2. production strategy, 3. employment, 4. R\(\&\)D, 5. pollution. The models are autonomous differential equations (with at least two state variables). Only the first model does not involve intertemporal optimization. In all of them the author makes use of the Hopf bifurcation theorem (for a system \(\dot z=f_ \gamma(z)\), \(z=z(t)\in {\mathcal R}^ n\), \(\gamma\in {\mathcal R}\) under some assumptions on the eigenvalues of the Jacobian \(D_ zf_{\gamma^*}(z^*)\) at an equilibrium \(f_{\gamma^*}(z^*)=0\) there is a stable cycle for (some) parameters \(\gamma\) close to \(\gamma^*\)). The first model is presented with detailed calculations, which explains how to look for limit cycles, i.e. how to use the Hopf theorem; also the second one is treated analytically. The last three ones are treated numerically (with a time discrete ADPLUS model), and a qualitative discussion is given. An economic interpretation explains the meaning of stable cycles in the models. The paper contains a large list of references.
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    stable oscillations
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    stable limit cycles
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    advertising
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    production strategy
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    employment
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    pollution
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    Hopf bifurcation theorem
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