On nonlinear theories of economic cycles and the persistence of business cycles
This paper is an attempt to revive the theory of endogeneous business cycles. Section II explores the dynamic structure of various linear and nonlinear theories of business cycles, including the wage share- employment model of William Goodwin, the profit-investment model of Kalecki and income-investment model of Kaldor, with the emphasis placed on the importance of limit-cycle theories in macroeconomic dynamics. Section III develops a profit-accumulation model which generalizes Goodwin and Kaldor, and is capable of generating sustained endogenous cycles. This model consists of two differential equations. The first equation describes the rate of capital accumulation as a function of profits and the capital stock, while the second equation hypothesizes that profits rise when investment exceeds saving, and fall when saving exceeds investment. Saving and investment are both functions of profits and the capital stock. Using the Poincaré-Bendixson theorem, the paper shows that this dynamic system is capable of creating its own cycles. These cycles are self-correcting, fluctuate within limits, and are characterized by fluctuations in profits, capital accumulation and employment. The last section of the paper provides a numerical simulation to demonstrate the properties of the model. The reference section contains a useful guide to earlier contributions to the theory of business cycles.
- On dynamics in a two-sector Keynesian model of business cycles
- Existence and stability of business cycles
- Analysis of business cycles using a mathematical model of Markov stochastic processes
- scientific article; zbMATH DE number 4160426
- On the existence and stability of business cycles in a dynamic model of a closed economy
- [The Existence and Persistence of Cycles in a Non-linear Model: Kaldor's 1940 Model Re-examined]: A Comment
- A note on the positivity constraint in Olech's theorem
- Dynamical systems on surfaces. Transl. from the French by H. G. Helfenstein
- Handbook of mathematical economics. Vol. II
- scientific article; zbMATH DE number 3131266 (Why is no real title available?)
- scientific article; zbMATH DE number 3173871 (Why is no real title available?)
- scientific article; zbMATH DE number 3974681 (Why is no real title available?)
- scientific article; zbMATH DE number 3718924 (Why is no real title available?)
- scientific article; zbMATH DE number 3727971 (Why is no real title available?)
- scientific article; zbMATH DE number 3484411 (Why is no real title available?)
- scientific article; zbMATH DE number 3199016 (Why is no real title available?)
- Nonlinear oscillations, dynamical systems, and bifurcations of vector fields
- On persistent disequilibrium
- On the Stability of the Competitive Equilibrium, I
- Solutions of Saddle Value Problems by Differential Equations
- Stochastic Implications of Orbital Asymptotic Stability of a Nonlinear Trade Cycle Model
- The Existence and Persistence of Cycles in a Non-linear Model: Kaldor's 1940 Model Re-examined
- The Nonlinear Accelerator and the Persistence of Business Cycles
- Microeconomic foundations of cyclical irregularities or chaos
- Limit cycles in van der Ploeg's model of economic growth and conflict over the distribution of income
- Nonlinear effects of fiscal policy over the business cycle
- Short-run inventory oscillations in the Eckalbar disequilibrium macro model
- Structural stability analysis in a dynamic IS-LM-AS macroeconomic model with inflation expectations
- A three-country Kaldorian business cycle model with fixed exchange rates: a continuous time analysis
- Kaldorian dynamics in an open economy
- Time elements and oscillatory fluctuations in the Keynesian macroeconomic system
- The complexity of nonlinear dynamic economic systems—the Kaldorian model with bond finance of the government
- ON THE UNIQUENESS OF LIMIT CYCLES IN BUSINESS CYCLE THEORY
- Economic cycles in an inflationary open economy
- A non-Walrasian microeconomic foundation of the ``profit principle of investment
- scientific article; zbMATH DE number 772622 (Why is no real title available?)
- Nonlinear endogenous business cycles: Zambelli-Goodwin excursions in cellular automata worlds
- Endogenous economic resilience, loss of resilience, persistent cycles, multiple attractors, and disruptive contractions
- The nonlinear economy: how resource constraints lead to business cycles
- Cyclical economic growth-re-examining the Goodwin model
- First-passage time for stability analysis of the Kaldor model
This page was built for publication: On nonlinear theories of economic cycles and the persistence of business cycles
Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q579106)
