On dynamics in a four-dimensional model of a small open economy

DOI

10.2991/amse-19.2019.11How to use a DOI?

Keywords

macroeconomic dynamic model, equilibrium, stability, center manifold, bifurcation equation, business cycles

Abstract

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.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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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  - Proceedings of the 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  - 10.2991/amse-19.2019.11
ID  - Grausová2019/10
ER  -