Stability, instability and complex behavior in macrodynamic models with policy lag
We construct simple macrodynamic models with policy lag by means of mixed difference and differential equations, and study how lags in policy response affect the macroeconomic (in)stability. Local dynamics of the prototype model are studied analytically, and the global dynamics of the prototype and...
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| Format: | Article |
| Language: | English |
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Wiley
2000-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1155/S1026022600000583 |
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| _version_ | 1841524610307194880 |
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| author | Toichiro Asada Hiroyuki Yoshida |
| author_facet | Toichiro Asada Hiroyuki Yoshida |
| author_sort | Toichiro Asada |
| collection | DOAJ |
| description | We construct simple macrodynamic models with policy lag by means of mixed difference and differential equations, and study how lags in policy response affect the macroeconomic (in)stability. Local dynamics of the prototype model are studied analytically, and the global dynamics of the prototype and the extended models are studied by means of numerical simulations. We show that the government can stabilize the intrinsically unstable economy if the policy lag is sufficiently short, but the system becomes locally unstable when the policy lag is too long. We also show the existence of cycles and complex behavior in some range of the policy lag. |
| format | Article |
| id | doaj-art-38922f45a76447739e4ff48da2e2227d |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2000-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-38922f45a76447739e4ff48da2e2227d2025-02-03T05:47:45ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2000-01-015428129510.1155/S1026022600000583Stability, instability and complex behavior in macrodynamic models with policy lagToichiro Asada0Hiroyuki Yoshida1Faculty of Economics, Chuo University 742-1 Higashinakano, Hachioji, Tokyo 192-0393, JapanFaculty of Economics, Nagoya Gakuin University 1350 Kamishinanocho, Seto Aichi 480-1298, JapanWe construct simple macrodynamic models with policy lag by means of mixed difference and differential equations, and study how lags in policy response affect the macroeconomic (in)stability. Local dynamics of the prototype model are studied analytically, and the global dynamics of the prototype and the extended models are studied by means of numerical simulations. We show that the government can stabilize the intrinsically unstable economy if the policy lag is sufficiently short, but the system becomes locally unstable when the policy lag is too long. We also show the existence of cycles and complex behavior in some range of the policy lag.http://dx.doi.org/10.1155/S1026022600000583Policy lag; Mixed difference and differential equations; Dynamic stability; Hopf bifurcation; Complex behavior. |
| spellingShingle | Toichiro Asada Hiroyuki Yoshida Stability, instability and complex behavior in macrodynamic models with policy lag Discrete Dynamics in Nature and Society Policy lag; Mixed difference and differential equations; Dynamic stability; Hopf bifurcation; Complex behavior. |
| title | Stability, instability and complex behavior in macrodynamic models with policy lag |
| title_full | Stability, instability and complex behavior in macrodynamic models with policy lag |
| title_fullStr | Stability, instability and complex behavior in macrodynamic models with policy lag |
| title_full_unstemmed | Stability, instability and complex behavior in macrodynamic models with policy lag |
| title_short | Stability, instability and complex behavior in macrodynamic models with policy lag |
| title_sort | stability instability and complex behavior in macrodynamic models with policy lag |
| topic | Policy lag; Mixed difference and differential equations; Dynamic stability; Hopf bifurcation; Complex behavior. |
| url | http://dx.doi.org/10.1155/S1026022600000583 |
| work_keys_str_mv | AT toichiroasada stabilityinstabilityandcomplexbehaviorinmacrodynamicmodelswithpolicylag AT hiroyukiyoshida stabilityinstabilityandcomplexbehaviorinmacrodynamicmodelswithpolicylag |