Banerjee, Sanjibani and Barnett, William A. and Duzhak, Evgeniya A. and Gopalan, Ramu (2011): Bifurcation Analysis of Zellner's Marshallain Macroeconomic Model.

PDF
MPRA_paper_30059.pdf Download (518kB)  Preview 
Abstract
The Marshallian Macroeconomic Model in Zellner and Israilevich (2005) provides a novel way to examine sectoral dynamics through the introduction of a dynamic entry/exit equation in addition to the usual demand and supply functions found in models of this class. In this paper we examine the possibility of cyclical behavior in the Marshallian Macroeconomic Model and investigate the existence of a Hopf bifurcation with respect to the parameter in the entry/exit equation.
Item Type:  MPRA Paper 

Original Title:  Bifurcation Analysis of Zellner's Marshallain Macroeconomic Model 
Language:  English 
Keywords:  Marshallian Macroeconomic Model; Dynamic Entry/Exit; Hopf Bifurcation; Limit Cycles 
Subjects:  L  Industrial Organization > L1  Market Structure, Firm Strategy, and Market Performance > L16  Industrial Organization and Macroeconomics: Industrial Structure and Structural Change ; Industrial Price Indices E  Macroeconomics and Monetary Economics > E3  Prices, Business Fluctuations, and Cycles > E32  Business Fluctuations ; Cycles C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61  Optimization Techniques ; Programming Models ; Dynamic Analysis C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62  Existence and Stability Conditions of Equilibrium 
Item ID:  30059 
Depositing User:  William A. Barnett 
Date Deposited:  05. Apr 2011 17:53 
Last Modified:  30. Dec 2015 16:29 
References:  Barnett, W. A., 2000. Perspective on the current state of macroeconomic theory. In: W.A.Barnett, Serletis, A. (Eds.), The theory of monetary aggregation. North Holland, pp. 600601. Barnett, W. A., Duzhak, E., 2008. Nonrobust dynamic inferences from macroeconometric models: Bifurcation stratification of confidence regions. Physica A 387, 38173825. Barnett, W. A., Duzhak, E., 2010. Empirical assessment of bifurcation regions within new Keynesian models. Economic Theory 45, 99128. Barnett, W. A., He, Y., 2002. Stabilization policy as bifurcation selection: would stabilization policy work if the economy really were unstable? Macroeconomic Dynamics 6 (05), 713747. Barnett, W. A., He, Y., 2004. Bifurcations in macroeconomic models. In: S. Dowrick, R. Pitchford, S. T. (Eds.), Economic growth and macroeconomic dynamics: Recent developments in economic theory. Cambridge University Press, pp. 95112. Barnett, W. A., He, Y., 2006. Singularity bifurcations. Journal of Macroeconomics 28 (1), 522. Barnett, W. A., He, Y., (2010). Existence of singularity bifurcation in an Eulerequations model of the United States economy: Grandmont was right. Economic Modelling 27 (6), 13451354. Benhabib, J., Day, R. H., 1982. A characterization of erratic dynamics in, the overlapping generations model. Journal of Economic Dynamics and Control 4, 3755. Benhabib, J., Nishimura, K., 1979. The hopf bifurcation and the existence and stability of closed orbits in multisector models of optimal economic growth. Journal of Economic Theory 21 (3), 421444. Bergstrom, A. R., Nowman, K. B., Wymer, C. R., 1992. Gaussian estimation of a second order continuous time macroeconometric model of the UK. Economic Modelling 9 (4), 313351. Boldrin, M., Woodford, M., 1990. Equilibrium models displaying endogenous fluctuations and chaos : A survey. Journal of Monetary Economics 25 (2), 189222. Grandmont, J.M., 1985. On endogenous competitive business cycles. Econometrica 53 (5), 9951045. Kuznetsov, Y. A., 2004. Elements of applied bifurcation theory, 3rd Edition. Springer. Leeper, E., Sims, C., 1994. Toward a modern macro model usable for policy analysis. NBER Macroeconomic Annual, 81117. Veloce, W., Zellner, A., 1985. Entry and empirical demand and supply analysis for competitive industries. Journal of Econometrics 30 (12), 459471. Zellner, A., Israilevich, G., 2005. Marshallian macroeconomic model: A progress report. Macroeconomic Dynamics 9 (02), 220243. 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/30059 