Mathematical modeling of the unemployment problem in a context of financial crisis

Eric Rostand Njike-Tchaptchet and Calvin Tadmon

Mathematics and Computers in Simulation (MATCOM), 2023, vol. 211, issue C, 241-262

Abstract: In this paper, we formulate a new system of nonlinear ordinary differential equations to study the unemployment problem in a context of financial crisis. We first prove the existence of a unique positive equilibrium. Then, using an appropriate Lyapunov function under some specified conditions, we prove the global stability of the unique positive equilibrium. We also propose and compare two control strategies with the objective to improve, at the lowest cost, the employment rate. Our results suggest that, in order to reduce the unemployment rate, it is better for a government to assist unemployed people in building their own business which will allow them to further create new vacancies than to assist self-employed individuals to create new vacancies. Numerical simulations are presented to substantiate the theoretical results.

Keywords: Mathematical modeling; Financial crisis; Unemployment; Lyapunov function; Optimal control (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:matcom:v:211:y:2023:i:c:p:241-262

DOI: 10.1016/j.matcom.2023.04.014

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