Acta Oeconomica Pragensia 2005, 13(1):10-20 | DOI: 10.18267/j.aop.123

Local Stability and Bifurcations in Kaldor Model

Roman Binter1, Lukáš Vácha2
1 Ing. Roman Binter - student of doctoral study; Department of Monetary Theory and Policy, Faculty of Finance and Accounting, University of Economies, Prague, nám. W. Churchilla 4, 130 67 Prague 3, Czech Republic, xbinr01@hotmail.com
2 Mgr. Lukáš Vácha - student of doctoral study; Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nábřeží 6, 111 01 Prague 1, Czech Republic, lvacha@cbox.cz

We analyze a discrete version of a simple Kaldor model. As is typical for Kaldor model we consider an S shaped investment function. This leads to either a one or three equilibria of the model. For simplicity reasons we do not consider an S shape saving function as assumed in the original Kaldor paper. This does not affect any analytical conclusions as for presentation of dynamic properties nonlinear investment function is sufficient. Our aim is to study changes in the model dynamics under varying parameters. We study transition between one and two equilibria setup and also each of the set up separately.

Keywords: economic dynamics, bifurcations, Kaldor model
JEL classification: C62, E12, E32

Published: March 1, 2005  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Binter, R., & Vácha, L. (2005). Local Stability and Bifurcations in Kaldor Model. Acta Oeconomica Pragensia, 13(1), 10-20. doi: 10.18267/j.aop.123
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. BISCHI, G., I. - DIECI, R. - RODANO, G. - SALTARI, E. (2001): Multiple attractors and global bifurcations in a Kaldor-type business cycle model. Journal of Evolutionary Economics, 2001, Vol. 11, No. 5, pp. 527-524. Go to original source...
    2. KALDOR, N. (1940): A Model of the Trade Cycle. Economic Journal, Vol. 50, No. 197, pp. 78-92. Reprinted in (1964): Essays on economic stability and growth. London, Duckworth, pp. 177-192. Go to original source...
    3. KODERA, J. - SLADKÝ, K. - VOŠVRDA, M. (2001): The Role of Inflation Rate on the Dynamics of an Extended Kaldor Model, Czech Econometric Society, 2001.
    4. SZYDLOWSKI, M. - KRAWIEC, A. (2001): The Kaldor-Kalecki Model of Business Cycle as a Two-Dimensional Dynamical System. Journal of Nonlinear Mathematical Physics, 2001, Vol. 8, No. 2, pp. 266-271. Go to original source...
    5. FLASCHEL, P. - FRANKE, R. - DEMMLER, W. (1997): Dynamic Macroeconomics. Cambridge, MA, MIT Press, 1997.
    6. LORENZ, H., W. (1993): Nonlinear Dynamic Economics and Chaotic Motion. Berlin, Springer Verlag, 1993. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content