Non-Autonomous Business Cycle Model

Revisiting a Macroeconomic Controversy: The Case of the Multiplier–Accelerator Effect

“…For instance, Böhm and Jungeilges (2004) introduced a random perturbations case in which the multiplier-accelerator model belongs to the class of generalized two-dimensional vector autoregressive systems of order 1 (VAR1), including so-called Markov switching models. Cánovas Peña and Marín (2006) studied the multiplieraccelerator system under different assumptions by using the notions of non-autonomous discrete systems.…”

Disequilibrium dynamics in a Keynesian model with time delays

“…To this purpose, we mention here the works of 1) Asada and Yoshida (2001), the aim of which is to study the macroeconomic effects of a "policy lag" (Asada and Yoshida, 2001, p. 282) in a nonlinear dynamic version of a Keynesian model. In particular, the authors characterise the dynamic properties of the resulting system governed by delay differential equations finding that too long a delay in implementing the policy may make the stabilising effect of the public expenditure ineffective; 2) Cánovas and Ruiz Marín (2006), who develop a non-autonomous model in discrete time finding some analytical and simulative results on the existence of chaotic dynamics that are well suited to describe business cycle fluctuations; 3) Böhm (2006), who modifies the standard multiplier-accelerator model by adding several kinds of random components acting either on the multiplier or the accelerator or, alternatively, on both of them.…”