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On dynamics in a two-sector Keynesian model of business cycles

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  • Murakami, Hiroki
  • Zimka, Rudolf

Abstract

The paper investigates a two-sector Keynesian model of business cycles, describing the fluctuations of consumption and investment goods. It makes an analysis of issues concerning the existence of limit cycles around its equilibrium. There is derived the bifurcation equation of the model, giving conditions for the existence of limit cycles and their stability. The achieved results are illustrated on an example with numerical simulations.

Suggested Citation

  • Murakami, Hiroki & Zimka, Rudolf, 2020. "On dynamics in a two-sector Keynesian model of business cycles," Chaos, Solitons & Fractals, Elsevier, vol. 130(C).
    • Handle: RePEc:eee:chsofr:v:130:y:2020:i:c:s0960077919303601
    DOI: 10.1016/j.chaos.2019.109419
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    2. Murakami, Hiroki & Sasaki, Hiroaki, 2020. "Economic development with public capital accumulation: The crucial role of wage flexibility on business cycles," Economic Modelling, Elsevier, vol. 93(C), pages 299-309.

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