Abstract
Dynamical-systems approaches have historically been used in business-cycle theory to generate sustained oscillations in macroeconomic variables. We aim to contribute to this literature by extending the original Samuelson multiplier-accelerator model with a discontinuous stabilization policy in terms of government expenditure. We show that the nonsmoothness yields dynamics in terms of periodic orbits and irregular fluctuations, not found in the original Samuelson model. We also note with particular interest that our model is able to generate localized nonstationary dynamics, which is in contrast to the most standard models found in the literature.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
