Hopf bifurcation of a financial dynamical system with delay

Yasemin Çalış, Ali Demirci and Cihangir Özemir

Mathematics and Computers in Simulation (MATCOM), 2022, vol. 201, issue C, 343-361

Abstract: The aim of this work is to investigate the qualitative behaviour of a financial dynamical system which contains a time delay. We investigate the dynamic response of this system of which variables are interest rate, investment demand, price index and average profit margin. As a plus to the available literature, the model investigated takes into account a timed delayed feedback in the investment demand. We perform a stability analysis at the fixed points and show that the system undergoes a Hopf bifurcation using well-known methods of stability analyses for delayed systems. The bifurcation analyses are supported by numerical simulations. The analysis reveals that for a set of parameters for which the non-delayed system is stable, a delay in the investment demand may drive the system to instability.

Keywords: Delayed financial model; Hopf bifurcation; Stability analysis (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:matcom:v:201:y:2022:i:c:p:343-361

DOI: 10.1016/j.matcom.2022.05.003

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