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Hopf bifurcation of a financial dynamical system with delay

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  • Çalış, Yasemin
  • Demirci, Ali
  • Özemir, Cihangir

Abstract

The aim of this work is to investigate the qualitative behaviour of a financial dynamical system which contains a time delay. We investigate the dynamic response of this system of which variables are interest rate, investment demand, price index and average profit margin. As a plus to the available literature, the model investigated takes into account a timed delayed feedback in the investment demand. We perform a stability analysis at the fixed points and show that the system undergoes a Hopf bifurcation using well-known methods of stability analyses for delayed systems. The bifurcation analyses are supported by numerical simulations. The analysis reveals that for a set of parameters for which the non-delayed system is stable, a delay in the investment demand may drive the system to instability.

Suggested Citation

  • Çalış, Yasemin & Demirci, Ali & Özemir, Cihangir, 2022. "Hopf bifurcation of a financial dynamical system with delay," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 201(C), pages 343-361.
    • Handle: RePEc:eee:matcom:v:201:y:2022:i:c:p:343-361
    DOI: 10.1016/j.matcom.2022.05.003
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    References listed on IDEAS

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    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.
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    Cited by:

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    2. Liu, Yifan & Cai, Jiazhi & Xu, Haowen & Shan, Minghe & Gao, Qingbin, 2023. "Stability and Hopf bifurcation of a love model with two delays," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 205(C), pages 558-580.

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