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Second Order Dynamics Of Economic Cycles

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Author Info
Purica, Ionut () (Institute for Economic Forecasting, Romanian Academy)
Caraiani, Petre () (Institute for Economic Forecasting, Romanian Academy)

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Abstract

The monthly data of the industrial production in Romania after the structural discontinuity occurring at the end of 1989 show an under-damped oscillatory behavior that suggests an evolution of second order systems excited by a step function. Since this behavior is well described in control systems we are doing what the literature usually calls a reversed engineering of the data in order to identify the specific parameters for the economic cycle of industrial production. The final goal is to determine the second order differential equation that may be associated to the economic process related to industrial production evolution. This paper is a first contribution that opens an alternative approach to describe the economic dynamics.

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File URL: http://www.ipe.ro/rjef/rjef1_09/rjef1_09_3.pdf
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Publisher Info
Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): 6 (2009)
Issue (Month): 1 (March)
Pages: 36-47
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Handle: RePEc:rjr:romjef:v:6:y:2009:i:1:p:36-47

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Related research
Keywords: business cycles; simulations; nonlinear methods; transition economies; mathematical methods;

Find related papers by JEL classification:
C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation

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This page was last updated on 2009-11-17.


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