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Investment Limit Cycles in a Socialist Economy

  • Simonovits, A

The present paper generalizes a linear cycle model of the socialist economy studied in Simonovits (1990): the two equations describing the reproduction of the tensions are retained, while the two linear reaction equations are confined to the interval of lower and upper bounds; outside these intervals the decisions are given by the corresponding bounds (cf. Hicks, 1950). The main result is the following: If a certain linear system of equations and inequalities has a solution, then there exists a limit cycle with period 4, the amplitude of which is independent of the initial states. Copyright 1991 by Kluwer Academic Publishers

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Article provided by Springer in its journal Economics of Planning.

Volume (Year): 24 (1991)
Issue (Month): 1 ()
Pages: 27-46

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Handle: RePEc:kap:ecopln:v:24:y:1991:i:1:p:27-46
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