6533b852fe1ef96bd12ab619

RESEARCH PRODUCT

Remarks on the economic interpretation of Hopf bifurcations

Christoph Kind

subject

Period-doubling bifurcationHopf bifurcationEconomics and EconometricsPure mathematicsSaddle-node bifurcationBifurcation diagramBiological applications of bifurcation theoryNonlinear systemsymbols.namesakeHysteresis (economics)symbolsInfinite-period bifurcationMathematical economicsFinanceMathematics

description

Abstract The Hopf bifurcation theorem has become a frequently used tool in the study of nonlinear dynamical economic systems. In this paper, it is shown that phenomena like multiple limit cycles, hysteresis loops and catastrophic transitions may possibly accompany a Hopf bifurcation. The theoretical argument is illustrated in Foley's liquidity cost–business cycle model.

https://doi.org/10.1016/s0165-1765(98)00224-9