The Dynamic Properties of a Nonlinear Economic Model with Extreme Financial Frictions
Joint Authors
Source
Mathematical Problems in Engineering
Issue
Vol. 2018, Issue 2018 (31 Dec. 2018), pp.1-9, 9 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2018-07-05
Country of Publication
Egypt
No. of Pages
9
Main Subjects
Abstract EN
A generalized economic model with two kinds of agents (farmers and landlords) is investigated.
Farmers produce grains by renting lands from landlords.
The land which is not rented is cultivated by less productive landlords.
The economy is assumed to be with extreme frictions so that there are no markets for agents to trade grains.
The rental rate is determined by the equilibrium of the supply and demand.
We consider the situation that farmers are likely to take more risk when the rental rate is low and have more risk aversion if the rate goes high.
The psychological anticipation is taken into account in the setting of our model.
Using the optimal control theory, the dynamic properties of the rental rate and its influence to the endogenous volatility are analyzed.
Besides, we clarify that the rental market has an instinctive ability to dominate the anticipation of agents.
American Psychological Association (APA)
Wang, Huan& Huang, Wen-Yi. 2018. The Dynamic Properties of a Nonlinear Economic Model with Extreme Financial Frictions. Mathematical Problems in Engineering،Vol. 2018, no. 2018, pp.1-9.
https://search.emarefa.net/detail/BIM-1209759
Modern Language Association (MLA)
Wang, Huan& Huang, Wen-Yi. The Dynamic Properties of a Nonlinear Economic Model with Extreme Financial Frictions. Mathematical Problems in Engineering No. 2018 (2018), pp.1-9.
https://search.emarefa.net/detail/BIM-1209759
American Medical Association (AMA)
Wang, Huan& Huang, Wen-Yi. The Dynamic Properties of a Nonlinear Economic Model with Extreme Financial Frictions. Mathematical Problems in Engineering. 2018. Vol. 2018, no. 2018, pp.1-9.
https://search.emarefa.net/detail/BIM-1209759
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1209759