Abstractequation models represent an important class of macroeconomic systems. Our ongoing research (He and Barnett (2003)) on the Leeper and Sims (1994) Euler equations macroeconometric model is revealing the existence of singularity-induced bifurcations, when the modelÂ¡Â¯s parameters are within a confidence region about the parameter estimates. Although known to engineers, singularity bifurcation has not previously been seen in the economics literature. Knowledge of the nature of singularity-induced bifurcations is likely to become important in understanding the dynamics of modern macroeconometric models. This paper explains singularity-induced bifurcation, its nature, and its identification and contrasts this class of bifurcations with the more common forms of bifurcation we have previously encountered within the parameter space of the Bergstrom and Wymer (1976) continuous time macroeconometric model of the UK economy. (See, e.g., Barnett and He (1999, 2002)).
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Macroeconomics.
Volume (Year): 28 (2006)
Issue (Month): 1 (March)
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Web page: http://www.elsevier.com/locate/inca/622617
Other versions of this item:
- Yijun He & William A. Barnett, 2004. "Singularity Bifurcation," Macroeconomics 0409024, EconWPA, revised 13 Oct 2004.
- Yijun He & William Barnett, 2004. "Singularity Bifurcations," WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS 200412, University of Kansas, Department of Economics, revised Oct 2004.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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