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Hopf bifurcation in a dynamic IS–LM model with time delay

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  • Neamţu, Mihaela
  • Opriş, Dumitru
  • Chilaˇrescu, Constantin

Abstract

The paper investigates the impact of delayed tax revenues on the fiscal policy out-comes. Choosing the delay as a bifurcation parameter we study the direction and the stability of the bifurcating periodic solutions. We show when the system is stable with respect to the delay. Some numerical examples are given to confirm the theoretical results.

Suggested Citation

  • Neamţu, Mihaela & Opriş, Dumitru & Chilaˇrescu, Constantin, 2007. "Hopf bifurcation in a dynamic IS–LM model with time delay," Chaos, Solitons & Fractals, Elsevier, vol. 34(2), pages 519-530.
    • Handle: RePEc:eee:chsofr:v:34:y:2007:i:2:p:519-530
    DOI: 10.1016/j.chaos.2006.03.052
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    References listed on IDEAS

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    1. Szydłowski, Marek & Krawiec, Adam, 2005. "The stability problem in the Kaldor–Kalecki business cycle model," Chaos, Solitons & Fractals, Elsevier, vol. 25(2), pages 299-305.
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    3. De Cesare, Luigi & Sportelli, Mario, 2005. "A dynamic IS-LM model with delayed taxation revenues," Chaos, Solitons & Fractals, Elsevier, vol. 25(1), pages 233-244.
    4. Liao, Xiaofeng & Li, Chuandong & Zhou, Shangbo, 2005. "Hopf bifurcation and chaos in macroeconomic models with policy lag," Chaos, Solitons & Fractals, Elsevier, vol. 25(1), pages 91-108.
    5. Garry J. Schinasi, 1981. "A Nonlinear Dynamic Model of Short Run Fluctuations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 649-656.
    6. Torre, V, 1977. "Existence of Limit Cycles and Control in Complete Keynesian System by Theory of Bifurcations," Econometrica, Econometric Society, vol. 45(6), pages 1457-1466, September.
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    Cited by:

    1. Son, Woo-Sik & Park, Young-Jai, 2011. "Delayed feedback on the dynamical model of a financial system," Chaos, Solitons & Fractals, Elsevier, vol. 44(4), pages 208-217.
    2. De Cesare, Luigi & Sportelli, Mario, 2012. "Fiscal policy lags and income adjustment processes," Chaos, Solitons & Fractals, Elsevier, vol. 45(4), pages 433-438.

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