Dynamics in a nonlinear Keynesian good market model

Ahmad Naimzada and Marina Pireddu

No 254, Working Papers from University of Milano-Bicocca, Department of Economics

Abstract: In this paper we show how a rich variety of dynamical behaviors can emerge in the standard Keynesian income-expenditure model when a nonlinearity is introduced, both in the cases with and without endogenous government spending. A specific sigmoidal functional form is used for the adjustment mechanism of income with respect to the excess demand, in order to bound the income variation. With the aid of analytical and numerical tools, we investigate the stability conditions, bifurcations, as well as periodic and chaotic dynamics. Globally, we study multistability phenomena, i.e., the coexistence of different kinds of attractors.

Keywords: nonlinearities; complex dynamics; Keynesian model; business cycle; fiscal policy (search for similar items in EconPapers)
JEL-codes: C62 E12 E32 E62 (search for similar items in EconPapers)
Pages: 22
Date: 2013-09, Revised 2013-09
New Economics Papers: this item is included in nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://repec.dems.unimib.it/repec/pdf/mibwpaper254.pdf First version, 2013 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mib:wpaper:254

Access Statistics for this paper

More papers in Working Papers from University of Milano-Bicocca, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Matteo Pelagatti ().