EconPapers    
Economics at your fingertips  
 

Bifurcations in Continuous-Time Macroeconomic Systems

William Barnett and Yijun He
Additional contact information
Yijun He: Washington University in St. Louis

Macroeconomics from University Library of Munich, Germany

Abstract: This research investigates bifurcation phenomena in a continuous-time model of the United Kingdom. We use the Bergstrom, Nowman, and Wymer continuous-time dynamic macroeconometric model of the UK economy. We find that bifurcations are important with this model for understanding the dynamic properties of the system and for determining which parameters are the most important to those dynamic properties. We have discovered that both saddle-node bifurcations and Hopf bifurcations indeed exist with this model within the model's region of plausible parameter settings. We find that the existence of Hopf bifurcations is particularly useful, since those bifurcations may provide explanations for some cyclical phenomena in the macroeconomy. We further design numerical algorithms to locate the bifurcation boundaries, which we display in three dimensional color bifurcation diagrams. A notable and perhaps surprising fact is that both types of bifurcation can coexist with this well-regarded UK model---in the same neighborhood of the parameter space.

Keywords: nonlinearity; chaos; bifurcation; macroeconomics; UK; continuous; time (search for similar items in EconPapers)
JEL-codes: C14 C22 E32 E37 (search for similar items in EconPapers)
Pages: 24 pages
Date: 1998-06-03
Note: Type of Document - Postscript Compressed; pages: 24 ; figures: included. This paper was presented by Yijun He at the annual meetings of the Society for Nonlinear Dynamics and Econometrics and has been submitted to the Society's journal, the Journal of Nonlinear Dynamics and Econometrics, which is an online journal published by MIT Press.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/9805/9805018.ps.gz (application/postscript)
https://econwpa.ub.uni-muenchen.de/econ-wp/mac/papers/9805/9805018.pdf (application/pdf)

Related works:
Working Paper: Bifurcations in Continuous-Time Macroeconomic Systems (2012) Downloads
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:wpa:wuwpma:9805018

Access Statistics for this paper

More papers in Macroeconomics from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ( this e-mail address is bad, please contact ).

 
Page updated 2025-03-22
Handle: RePEc:wpa:wuwpma:9805018