On dynamics in a four-dimensional model of a small open economy
Mária Grausová, Miroslav Hužvár, Rudolf Zimka
Available Online October 2019.
- https://doi.org/10.2991/amse-19.2019.11How to use a DOI?
- macroeconomic dynamic model, equilibrium, stability, center manifold, bifurcation equation, business cycles
- In the paper, a four-dimensional nonlinear macroeconomic model of a small open economy describing the development of net real national income, real physical capital stock, nominal interest rate and nominal money stock is analysed. The functions of investment, savings, real income tax, liquidity preference and net exports that are included in the model are set up in accordance with economic theories. Therefore, the dependence of investments on net real national income is captured through an S-shaped curve, and the dependence of investments on nominal interest rate is modelled by an inverse of S-shaped curve. The Hopf bifurcation is applied to determine the bifurcation parameter of the model, to formulate the bifurcation equation, and to make a statement on the existence of business cycles.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Mária Grausová AU - Miroslav Hužvár AU - Rudolf Zimka PY - 2019/10 DA - 2019/10 TI - On dynamics in a four-dimensional model of a small open economy BT - 22nd International Scientific Conference on Applications of Mathematics and Statistics in Economics (AMSE 2019) PB - Atlantis Press SP - 100 EP - 112 SN - 2589-6644 UR - https://doi.org/10.2991/amse-19.2019.11 DO - https://doi.org/10.2991/amse-19.2019.11 ID - Grausová2019/10 ER -