IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03375804.html
   My bibliography  Save this paper

A first French episode in the renewal of nonlinear theory of economic cycles

Author

Listed:
  • Alain Raybaut

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

Abstract

This paper focusses on some relatively neglected French contributions to the revival of nonlinear business theory around 1980. Drawing on the formal distinction between continuous and discrete-time modeling, we investigate the mathematical and analytical features of these contributions. The Benassy model exemplifies the use of the Poincaré-Bendixon theorem to prove the existence of endogenous cycles in a simple non-Walrasian framework. The discretization of Kaldor's model by Dana and Malgrange mobilizes recent advances in bifurcation theory and chaotic dynamics developed at the same time by French scholars in dynamical systems. It is shown that both contributions build on the aggregate macroeconomic framework, but differ substantially in their objectives and ambition. Benassy mobilizes the nonlinear approach to extend his non-Walrasian theory to short-term dynamics. On the contrary, Dana and Malgrange are more interested in the operational aspects of nonlinear modeling. For the these reasons, this second line of research will contribute to further important developments in nonlinear dynamics in France, albeit in a different perspective.

Suggested Citation

  • Alain Raybaut, 2021. "A first French episode in the renewal of nonlinear theory of economic cycles," Post-Print hal-03375804, HAL.
    • Handle: RePEc:hal:journl:hal-03375804
    Note: View the original document on HAL open archive server: https://hal.science/hal-03375804
    as

    Download full text from publisher

    File URL: https://hal.science/hal-03375804/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chiarella,Carl & Flaschel,Peter, 2011. "The Dynamics of Keynesian Monetary Growth," Cambridge Books, Cambridge University Press, number 9780521180184, June.
    2. Grandmont, Jean-Michel, 1985. "On Endogenous Competitive Business Cycles," Econometrica, Econometric Society, vol. 53(5), pages 995-1045, September.
    3. Varian, Hal R, 1979. "Catastrophe Theory and the Business Cycle," Economic Inquiry, Western Economic Association International, vol. 17(1), pages 14-28, January.
    4. Grandmont, Jean-michel, 1989. "Keynesian issues and economic theory," CEPREMAP Working Papers (Couverture Orange) 8907, CEPREMAP.
    5. Grandmont, Jean-Michel, 2008. "Nonlinear difference equations, bifurcations and chaos: An introduction," Research in Economics, Elsevier, vol. 62(3), pages 122-177, September.
    6. Philippe Michel & Bertrand Wigniolle, 1993. "Une présentation simple des dynamiques complexes," Revue Économique, Programme National Persée, vol. 44(5), pages 885-912.
    7. Barnett,William A. & Geweke,John & Shell,Karl (ed.), 1989. "Economic Complexity: Chaos, Sunspots, Bubbles, and Nonlinearity," Cambridge Books, Cambridge University Press, number 9780521355636, June.
    8. Laurent Linnemer & Michael Visser, 2018. "Jean-Michel Grandmont: Not Playing Second Fiddle," Annals of Economics and Statistics, GENES, issue 130, pages 1-34.
    9. K. Vela Velupillai, 2008. "JAPANESE CONTRIBUTIONS TO NONLINEAR CYCLE THEORY IN THE 1950s," The Japanese Economic Review, Japanese Economic Association, vol. 59(1), pages 54-74, March.
    10. Richard H. Day, 1994. "Complex Economic Dynamics - Vol. 1: An Introduction to Dynamical Systems and Market Mechanisms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262041413, December.
    11. Schinasi, Garry J., 1982. "Fluctuations in a dynamic, intermediate-run IS-LM model: Applications of the Poincare-Bendixon theorem," Journal of Economic Theory, Elsevier, vol. 28(2), pages 369-375, December.
    12. repec:bla:scandj:v:91:y:1989:i:2:p:265-93 is not listed on IDEAS
    13. Benassy, Jean-Pascal, 1984. "A non-Walrasian model of the business cycle," Journal of Economic Behavior & Organization, Elsevier, vol. 5(1), pages 77-89, March.
    14. Benassy, Jean-Pascal, 1986. "Macroeconomics: An Introduction to the Non-Walrasian Approach," Elsevier Monographs, Elsevier, edition 1, number 9780120864256 edited by Shell, Karl.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alain Raybaut, 2019. "A First French Episode in the Renewal of Nonlinear Theory of Economic Cycles (1978-1985)," GREDEG Working Papers 2019-07, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    2. Hiroki Murakami, 2019. "A note on the “unique” business cycle in the Keynesian theory," Metroeconomica, Wiley Blackwell, vol. 70(3), pages 384-404, July.
    3. Chen, Shikuan, 1999. "Complex Dynamics of the Real Exchange Rate in an Open Macroeconomic Model," Journal of Macroeconomics, Elsevier, vol. 21(3), pages 493-508, July.
    4. Murakami, Hiroki, 2014. "Keynesian systems with rigidity and flexibility of prices and inflation–deflation expectations," Structural Change and Economic Dynamics, Elsevier, vol. 30(C), pages 68-85.
    5. Ramser, Hans Jürgen, 1988. "Neuere Beiträge zur Konjunkturtheorie: Ein Überblick," Discussion Papers, Series I 237, University of Konstanz, Department of Economics.
    6. Murakami, Hiroki, 2018. "Existence and uniqueness of growth cycles in post Keynesian systems," Economic Modelling, Elsevier, vol. 75(C), pages 293-304.
    7. Ferraris, Leo & Watanabe, Makoto, 2011. "Collateral fluctuations in a monetary economy," Journal of Economic Theory, Elsevier, vol. 146(5), pages 1915-1940, September.
    8. Rosser, J. Barkley & Rosser, Marina V., 2023. "The Bielefeld School of economics, Post Keynesian economics, and dynamic complexity," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 454-465.
    9. Venditti, Alain, 1998. "Indeterminacy and endogenous fluctuations in two-sector growth models with externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 33(3-4), pages 521-542, January.
    10. Kelly, David L. & Shorish, Jamsheed, 2000. "Stability of Functional Rational Expectations Equilibria," Journal of Economic Theory, Elsevier, vol. 95(2), pages 215-250, December.
    11. Cees Diks & Cars Hommes & Valentyn Panchenko & Roy Weide, 2008. "E&F Chaos: A User Friendly Software Package for Nonlinear Economic Dynamics," Computational Economics, Springer;Society for Computational Economics, vol. 32(1), pages 221-244, September.
    12. Jean-Michel Grandmont, 1998. "Expectations Formation and Stability of Large Socioeconomic Systems," Econometrica, Econometric Society, vol. 66(4), pages 741-782, July.
    13. Hallegatte, Stéphane & Ghil, Michael, 2008. "Natural disasters impacting a macroeconomic model with endogenous dynamics," Ecological Economics, Elsevier, vol. 68(1-2), pages 582-592, December.
    14. Hallegatte, Stéphane & Ghil, Michael & Dumas, Patrice & Hourcade, Jean-Charles, 2008. "Business cycles, bifurcations and chaos in a neo-classical model with investment dynamics," Journal of Economic Behavior & Organization, Elsevier, vol. 67(1), pages 57-77, July.
    15. Theodore Palivos & Dimitrios Varvarigos, 2010. "Education and growth: A simple model with complicated dynamics," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(4), pages 367-384, December.
    16. William A. Barnett, 2000. "Perspective on the Current State of Macroeconomic Theory," Contributions to Economic Analysis, in: The Theory of Monetary Aggregation, pages 593-605, Emerald Group Publishing Limited.
    17. Calvet, Laurent E., 2001. "Incomplete Markets and Volatility," Journal of Economic Theory, Elsevier, vol. 98(2), pages 295-338, June.
    18. Ramser, Hans Jürgen, 1987. "Konjunkturtheoretische Aspekte der neuen Keynesianischen Makroökonomik," Discussion Papers, Series I 228, University of Konstanz, Department of Economics.
    19. Evans George W & Honkapohja Seppo M.S. & Marimon Ramon, 2007. "Stable Sunspot Equilibria in a Cash-in-Advance Economy," The B.E. Journal of Macroeconomics, De Gruyter, vol. 7(1), pages 1-38, January.
    20. George-Marios Angeletos & Laurent E. Calvet, 2001. "Incomplete Markets, Growth, and the Business Cycle," Harvard Institute of Economic Research Working Papers 1910, Harvard - Institute of Economic Research.

    More about this item

    Keywords

    Endogenous business cycle theory; Nonlinear dynamics; Non-Walrasian and Kaldorian macrodynamics;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-03375804. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.