Existence of singularity bifurcation in an Euler-equations model of the United States economy: Grandmont was right

Economic Modelling

Volumn 27, Issue 6, 2010, Pages 1345-1354

  Barnett, William A ^a   He, Susan ^b  

^a UNIVERSITY OF KANSAS   (United States)

^b WASHINGTON STATE UNIVERSITY   (United States)

Author keywords

Bifurcation; Dynamic general equilibrium; Euler equations; Hopf bifurcation; Inference; Leeper and Sims model; Pareto optimality; Singularity bifurcation; Stability

Indexed keywords

EID: 77958160687     PISSN: 02649993     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.econmod.2010.07.020     Document Type: Article

References (36)

1. Bala V. A pitchfork bifurcation in the tatonement process. Economic Theory 1997, 10:521-530.
2. Barnett W.A., Chen P. The Aggregation Theoretic Monetary Aggregates are Chaotic and have Strange Attractors: An Econometric Application of Mathematical Chaos. Dynamic econometric modeling 1988, 199-246. Cambridge University Press, Cambridge, UK. W.A. Barnett, E.R. Berndt, H. White (Eds.).
3. Barnett W.A., Duzhak E.A. Non-robust dynamic inferences from macroeconometric models: bifurcation of confidence regions. Physica A 2008, 387(15):3817-3825. June.
4. Barnett W.A., Duzhak E.A. Empirical Assessment of Bifurcation Regions within New Keynesian Models. Economic Theory 2010, 45(1-2):99-128.
5. Barnett W.A., He Y. Analysis and Control of Bifurcations in Continuous Time Macroeconometric Systems. Proceedings of the 37th IEEE Conference on Decision and Control. December 16-18 1998, 2455-2460. Tampa, Florida.
6. Barnett W.A., He Y. Stability analysis of continuous time macroeconometric systems. Studies in Nonlinear Dynamics and Econometrics 1999, 3:169-188.
7. Barnett W.A., He Y. Nonlinearity, Chaos, and Bifurcation: A Competition and an Experiment. Economic theory, dynamics and markets: essays in honor of Ryuzo Sato 2001, 167-187. Kluwer Academic Publishers, Amsterdam. T. Negishi, R. Ramachandran, K. Mino (Eds.).
8. Barnett W.A., He Y. Stabilization policy as bifurcation selection: would stabilization policy work if the economy really were unstable?. Macroeconomic Dynamics 2002, 6:713-747.
9. Barnett W.A., He Y. Bifurcations in Macroeconomic Models. Economic growth and macroeconomic dynamics: recent developments in economic theory 2004, 95-112. Cambridge University Press, Cambridge, UK. S. Dowrick, P. Rohan, S. Turnovsky (Eds.).
10. Barnett W., He Y. Singularity bifurcations. Journal of Macroeconomics 2006, 28:5-22.
11. Barnett W.A., Deissenberg C., Feichtinger G. Economic Complexity: Non-Linear Dynamics, Multi-Agents Economies, and Learning 2004, Amsterdam, North Holland.
12. Barnett W.A., Geweke J., Shell K. Economic Complexity: Chaos, Sunspots, Bubbles, and Nonlinearity 2005, Cambridge University Press, Cambridge, UK.
13. Benhabib J. The Hopf bifurcation and the existence and stability of closed orbits in multisector models of optimal economic growth. Journal of Economic Theory 1979, 21:421-444.
14. Bergstrom A.R. Survey of Continuous Time Econometrics. Dynamic disequilibrium modeling 1996, 3-26. Cambridge University Press, Cambridge, UK. W.A. Barnett, G. Gandolfo, C. Hillinger (Eds.).
15. Bergstrom A.R., Nowman K.B. A Continuous Time Econometric Model of the United Kingdom with Stochastic Trends 2006, Cambridge University Press, Cambridge, UK.
16. Bergstrom A.R., Wymer C.R. A Model of Disequilibrium Neoclassic Growth and its Application to the United Kingdom. Statistical inference in continuous time economic models 1976, 267-327. Amsterdam, North Holland. A.R. Bergstrom (Ed.).
17. Bergstrom A.R., Nowman K.B., Wandasiewicz S. Monetary and fiscal policy in a second-order continuous time macroeconometric model of the United Kingdom. Journal of Economic Dynamics and Control 1994, 18:731-761.
18. Bergstrom A.R., Nowman K.B., Wymer C.R. Gaussian estimation of a second order continuous time macroeconometric model of the United Kingdom. Economic Modelling 1992, 9:313-352.
19. Binder M., Pesaran M.H. Stochastic growth models and their econometric implications. Journal of Economic Growth 1999, 4:139-183.
20. Boldrin M., Woodford M. Equilibrium models displaying endogenous fluctuations and chaos: a survey. Journal of Monetary Economics 1990, 25:189-222.
21. Cobb J.D. On the solutions of linear differential equations with singularcoefficients. Journal of Differential Equations 1982, 46:310-323.
22. Cobb J.D. A further interpretation of inconsistent initial conditions indescriptor variable systems. IEEE Transactions Automatic Control 1983, 28:920-922.
23. Gandolfo G. Economic Dynamics 1996, Springer, New York.
24. Gantmacher F.R. The Theory of Matrices 1974, Chelsea, New York.
25. Grandmont J.M. On endogenous competitive business cycles. Econometrica 1985, 53(5):995-1045.
26. Grandmont J.M. Expectations formation and stability of large socioeconomic systems. Econometrica 1998, 66:741-782.
27. Kim J. Constructing and estimating a realistic optimizing model of monetary policy. Journal of Monetary Economics 2000, 45:329-359.
28. Leeper E., Sims C. Toward a modern macro model usable for policy analysis. NBER Macroeconomics Annual 1994, 81-117.
29. Lucas R.E. Econometric Policy Evaluation: A Critique. The Phillips curve and labor markets. Journal of Monetary Economics, supplement 1976, 19-46. K. Brunner, A.H. Meltzer (Eds.).
30. Medio A. Chaotic Dynamics: Theory and Applications to Economics 1992, Cambridge University Press, Cambridge, UK.
31. Nieuwenhuis H.J., Schoonbeek L. Stability and the structure of continuous-time economic models. Economic Modelling 1997, 14:311-340.
32. Nishimura K., Takahashi H. Factor Intensity and Hopf Bifurcations. Dynamic Economic Models and Optimal Control 1992, 135-149. G. Feichtinger (Ed.).
33. Powell A., Murphy C. Inside a Modern Macroeconometric Model: A Guide to the Murphy Model 1997, Springer, Heidelberg.
34. Scarf H. Some examples of global instability of competitive equilibrium. Internationial Economic Review 1960, 1:157-172.
35. Swamy P.A.V.B., Tavlas G.S., Chang I.L. How stable are monetary policy rules: estimating the time-varying coefficients in monetary policy reaction function for the US. Computational Statistics and Data Analysis 2005, 49(2):575-590.
36. Wymer C.R. Structural nonlinear continuous time models in econometrics. Macroeconomic Dynamics 1997, 1:518-548.