Hopf bifurcation in the IS-LM business cycle model with time delay
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Date
2005-02-01
Authors
Cai, Jianping
Journal Title
Journal ISSN
Volume Title
Publisher
Texas State University-San Marcos, Department of Mathematics
Abstract
The distinction between investment decisions and implementation leads us to formulate a new IS-LM business cycle model. It is shown that the dynamics depends crucially on the time delay parameter - the gestation time period of investment. The Hopf bifurcation theorem is used to predict the occurrence of a limit cycle bifurcation for the time delay parameter. Our analysis shows that the limit cycle behavior is independent of the assumption of nonlinearity of the investment function. An example is given to verify the theoretical results.
Description
Keywords
Hopf bifurcation, Business cycle, IS-LM model, Time delay
Citation
Cai, J. (2005). Hopf bifurcation in the IS-LM business cycle model with time delay. <i>Electronic Journal of Differential Equations, 2005</i>(15), pp. 1-6.
Rights
Attribution 4.0 International