Kaldorian Assumptions and Endogenous Fluctuations in the Dynamic Fixed-Price IS-LM Model

BELLA, GIOVANNI;MATTANA, PAOLO;VENTURI, BEATRICE
2014-01-01

Abstract

With the aim of better understanding the conditions which determine endogenous fluctuations at business cycle frequencies, recent literature has revived interest in the Schinasi’s variant of the dynamic, intermediate-run, IS-LM model (Schinasi 1981, 1982). Results, however, remain confined to Kaldoriantype economies, namely to those economies which present a greater-than-unity marginal propensity to spend out of income. This paper contributes to the debate by showing that, in the case of a negative interest rate sensitivity of savings, stable endogenous cycles can actually emerge as equilibrium solutions of the model also in the case of non Kaldorian-type economies. To this end, we combine the instruments of the global analysis, specifically the homoclinic bifurcation Theorem of Kopell and Howard (1975), with numerical methods.
2014
Inglese
Complexity in Economics.Cutting Edge Research
Faggini M, Parziale A.
Faggini M, Parziale A
38
31
48
18
Springer
Berlin
9783319051840
Esperti anonimi
internazionale
scientifica
no
info:eu-repo/semantics/bookPart
2.1 Contributo in volume (Capitolo o Saggio)
Bella, Giovanni; Mattana, Paolo; Venturi, Beatrice
2 Contributo in Volume::2.1 Contributo in volume (Capitolo o Saggio)
3
268
reserved
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