Hysteresis in Economic Systems
AbstractThis paper describes how the Preisach model, with its superposition of hysteresis play operators, can be applied to economic systems. At the micro level economic agents, because of fixed or sunk costs of adjustment, adjust discontinuously to changes in state variables and have different trigger points for adjustment. Illustrations of this analytical framework are provided. Simulation exercises are pursued using plausible parameter values. A programme is then constructed to yield hysteresis measures for economic time series, which are then used to test for the presence of hysteresis in steady state relationships.
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Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 1999 with number 723.
Date of creation: 01 Mar 1999
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- Rod Cross & Julia Darby & Jonathan Ireland & Laura Piscitelli, 1999. "Hysteresis and Unemployment: a Preliminary Investigation," Computing in Economics and Finance 1999 721, Society for Computational Economics.
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"Strong Hysteresis due to Age Effects,"
Dundee Discussion Papers in Economics
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- Joseph Halevi & Neil Hart & Peter Kriesler, 2012. "The traverse, equilibrium analysis and post-Keynesian economics," Discussion Papers 2012-32, School of Economics, The University of New South Wales.
- Donald Katzner, 1999. "Hysteresis and the Modeling of Economic Phenomena," Review of Political Economy, Taylor & Francis Journals, vol. 11(2), pages 171-181.
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