Business Cycles: The Hicksian Floor-Roof Model Revisited
2002 (English)Report (Other academic)
The Hicksian multiplieraccelerator model with the original floorroof limits to investments is studied for the case of two regions linked by interregional trade. The result is a piecewise linear continuous four dimensional map, which is reduced to three dimensions through the choice of an appropriate distributed consumption lag. The attractors, basins, and bifurcations of the map are studied under assumption of a certain symmetry between the regions. The NeimarkHopf bifurcation for piecewise linear maps is described in detail which gives rise to the appearance of an attracting closed invariant curve homeomorphic to a circle. The structure of resonance regions in the parameter space are investigated.
Place, publisher, year, edition, pages
, CERUM Working Paper, ISSN 1404-5362 ; 51
IdentifiersURN: urn:nbn:se:umu:diva-24688OAI: oai:DiVA.org:umu-24688DiVA: diva2:227153
Distributor:Centrum för regionalvetenskap (CERUM), 90187, Umeå