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Economic Cycles

  • Wei-Bin Zhang
Part of the Springer Series in Synergetics book series (SSSYN, volume 53)

Abstract

In the previous chapter, we showed that small changes in external parameters may cause dramatic evolution of nonlinear dynamic economic systems when the systems are near critical points. Multiple equilibria are not the exception in such unstable systems. If we consider that small changes in parameters may be due to chance, these results imply that economic evolutionary paths cannot be decided by perfect historical determinism. Chance can change the development trajectory dramatically. However, the economic phenomena examined in Chap. 4 are time-independent. This chapter is concerned with those structural changes (due to small shifts of parameters) which result in regular time-dependent behavior — limit cycles.

Keywords

Interest Rate Periodic Solution Business Cycle Hopf Bifurcation Real Wage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 1991

Authors and Affiliations

  • Wei-Bin Zhang
    • 1
  1. 1.Institute for Futures StudiesStockholmSweden

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