Multi‐Frequency Cobweb Model: Decomposition of the Hog Cycle: Comment

Abstract

if the inequality is reversed. In case of equality, the ellipse reduces to a circle. Larson's model, which implicitly assumes equality between price and quantity amplitudes, will always give a circle. The direction in which the point (Pn, Qn) describes its locus is determined as follows. Let 0 be the directed angle pictured in figure 1. Then the sign of dO/dt determines the direction of the motioncounterclockwise if dO/dt > 0 and clockwise if dO/dt < 0. From figure 1, 0 = tan-l(Pn/Qn), and therefore