Singularity Bifurcation

Yijun He and William Barnett ()
Additional contact information
Yijun He: Washington State University

Abstract: Euler equation models represent an important class of macroeconomic systems. Our ongoing research (He and Barnett (2003)) on the Leeper and Sims (1994) Euler equations macroeconometric model is revealing the existence of singularity-induced bifurcations, when the model’s parameters are within a confidence region about the parameter estimates. Although known to engineers, singularity bifurcation has not previously been seen in the economics literature. Knowledge of the nature of singularity-induced bifurcations is likely to become important in understanding the dynamics of modern macroeconometric models. This paper explains singularity-induced bifurcation, its nature, and its identification and contrasts this class of bifurcations with the more common forms of bifurcation we have previously encountered within the parameter space of the Bergstrom and Wymer (1976) continuous time macroeconometric model of the UK economy. (See, e.g., Barnett and He (1999, 2002)).

Keywords: bifurcation; macroeconometrics; dynamics; nonlinearity; singularity (search for similar items in EconPapers)
JEL-codes: C14 C22 E37 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: Written 2004-09-28
Note: Type of Document - pdf; pages: 42

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: SINGULARITY BIFURCATIONS (2004)
Journal Article: Singularity bifurcations (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in Macroeconomics from EconWPA
Series data maintained by EconWPA ().