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Title: Dynamics in a nonlinear Keynesian good market model

In this paper, we show how a rich variety of dynamical behaviors can emerge in the standard Keynesian income-expenditure model when a nonlinearity is introduced, both in the cases with and without endogenous government spending. A specific sigmoidal functional form is used for the adjustment mechanism of income with respect to the excess demand, in order to bound the income variation. With the aid of analytical and numerical tools, we investigate the stability conditions, bifurcations, as well as periodic and chaotic dynamics. Globally, we study multistability phenomena, i.e., the coexistence of different kinds of attractors.
Authors:
 [1] ;  [2]
  1. Department of Economics, Quantitative Methods and Management, University of Milano-Bicocca, U7 Building, Via Bicocca degli Arcimboldi 8, 20126 Milano (Italy)
  2. Department of Mathematics and Applications, University of Milano-Bicocca, U5 Building, Via Cozzi 55, 20125 Milano (Italy)
Publication Date:
OSTI Identifier:
22290343
Resource Type:
Journal Article
Resource Relation:
Journal Name: Chaos (Woodbury, N. Y.); Journal Volume: 24; Journal Issue: 1; Other Information: (c) 2014 AIP Publishing LLC; Country of input: International Atomic Energy Agency (IAEA)
Country of Publication:
United States
Language:
English
Subject:
97 MATHEMATICAL METHODS AND COMPUTING; CHAOS THEORY; DEMAND; EXPENDITURES; INCOME; MATHEMATICAL MODELS; NONLINEAR PROBLEMS; STABILITY