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Numerical Exploration of Kaldorian Interregional Macrodynamics : Enhanced Stability and Predominance of Period Doubling under Flexible Exchange Rates
Joint Authors
Asada, Toichiro
Douskos, Christos
Kalantonis, Vassilis
Markellos, Panagiotis
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2010, Issue 2010 (31 Dec. 2010), pp.1-29, 29 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2010-08-11
Country of Publication
Egypt
No. of Pages
29
Main Subjects
Abstract EN
We present a discrete two-regional Kaldorian macrodynamic model with flexible exchange rates and explore numerically the stability of equilibrium and the possibility of generation of business cycles.
We use a grid search method in two-dimensional parameter subspaces, and coefficient criteria for the flip and Hopf bifurcation curves, to determine the stability region and its boundary curves in several parameter ranges.
The model is characterized by enhanced stability of equilibrium, while its predominant asymptotic behavior when equilibrium is unstable is period doubling.
Cycles are scarce and short-lived in parameter space, occurring at large values of the degree of capital movement β.
By contrast to the corresponding fixed exchange rates system, for cycles to occur sufficient amount of trade is required together with high levels of capital movement.
Rapid changes in exchange rate expectations and decreased government expenditure are factors contributing to the creation of interregional cycles.
Examples of bifurcation and Lyapunov exponent diagrams illustrating period doubling or cycles, and their development into chaotic attractors, are given.
The paper illustrates the feasibility and effectiveness of the numerical approach for dynamical systems of moderately high dimensionality and several parameters.
American Psychological Association (APA)
Asada, Toichiro& Douskos, Christos& Kalantonis, Vassilis& Markellos, Panagiotis. 2010. Numerical Exploration of Kaldorian Interregional Macrodynamics : Enhanced Stability and Predominance of Period Doubling under Flexible Exchange Rates. Discrete Dynamics in Nature and Society،Vol. 2010, no. 2010, pp.1-29.
https://search.emarefa.net/detail/BIM-458506
Modern Language Association (MLA)
Asada, Toichiro…[et al.]. Numerical Exploration of Kaldorian Interregional Macrodynamics : Enhanced Stability and Predominance of Period Doubling under Flexible Exchange Rates. Discrete Dynamics in Nature and Society No. 2010 (2010), pp.1-29.
https://search.emarefa.net/detail/BIM-458506
American Medical Association (AMA)
Asada, Toichiro& Douskos, Christos& Kalantonis, Vassilis& Markellos, Panagiotis. Numerical Exploration of Kaldorian Interregional Macrodynamics : Enhanced Stability and Predominance of Period Doubling under Flexible Exchange Rates. Discrete Dynamics in Nature and Society. 2010. Vol. 2010, no. 2010, pp.1-29.
https://search.emarefa.net/detail/BIM-458506
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-458506