On the comparative analysis of linear and nonlinear business cycle model: Effect on system dynamics, economy and policy making in general

Karim, Firdos; Chauhan, Sudipa; Dhar, Joydip

doi:10.3934/qfe.2020008

Cited by 12 publications

(3 citation statements)

References 12 publications

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“…Both of these entities bring down the cost of production per unit in addition to offering increased output and productivity. In fact, the economy suffers when the rate at which capital stock moves in fails to match with the rate of growing population leading to humongous under-employment and unemployment [ 22 , 30 ]. Hence, a capital stock that is expanding, by all means, contributes to a blooming GDP.…”

Section: Numerical Simulation and Discussionmentioning

confidence: 99%

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Analysing an epidemic–economic model in the presence of novel corona virus infection: capital stabilization, media effect, and the role of vaccine

Karim

Chauhan

Dhar

2022

Eur. Phys. J. Spec. Top.

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The pandemic being a health issue at its core is a multifaceted crisis encompassing both economic and epidemic factors in a twisted tale of challenges. In counteraction, we have proposed a combined epidemic–economic model that analyses system dynamics arising in the presence of an infectious disease (SARS-2-COVID-19 in our case). Dynamical analysis of the system has been performed in context to the equilibria along with local and global stability analysis of the system simultaneously visualizing the effect on capital stabilization. The global stability analysis has been performed using graph-theoretic method. Curve-Fit has been performed for the system using optimization algorithm. The relation between all the parameters and variables involved in the model has been explored by calculating sensitivity indices which gives us the proportion that a relative change in a parameter brings to the relative change in a variable. Our findings reveal that (1) Vaccination instigates economic growth (with evidence of data obtained for 24 countries). (2) Complete vaccination leads to a considerable reduction in all infections (reduction up to 90%, as per current CDC study). (3) Excessive exposure to media can facilitate spike in infections. (4) Parameter sensitivity analysis can be of immense help in policy formation.

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Section: Numerical Simulation and Discussionmentioning

confidence: 99%

“…The epidemic–economic model under investigation inspired from [ 19 ], is an amalgamation of Solow’s economic growth model [ 21 , 22 ] and an epidemic model. The model has been derived from the original SIR (Susceptible, Infected, Recovered) epidemiological model presented by Kermack and McKendrick [ 23 ].…”

Section: Mathematical Model: Evolutionmentioning

confidence: 99%

Analysing an epidemic–economic model in the presence of novel corona virus infection: capital stabilization, media effect, and the role of vaccine

Karim

Chauhan

Dhar

2022

Eur. Phys. J. Spec. Top.

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“…Pada penelitian ini, ditunjukkan perbandingan metode Runge-Kutta orde kelima dan Metode Extended Runge Kutta dalam mensimulasikan model yang telah diperoleh dengan kecepatan stabilitas model. Adapun Karim, dkk [10] membandingkan dinamika model siklus bisnis linier dan nonlinier dalam lingkungan yang semirip mungkin. Analisis sensitivitas parameter dilakukan untuk kedua model dan non linearitas dalam fungsi tabungan.…”

Section: Pendahuluanunclassified

Bifurkasi Hopf Pada Model Siklus Bisnis Investment Saving-Liquidity Money dengan Waktu Tunda

Waldhani

2022

Euler J. Ilm. Mat. Sains dan Teknol.

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The economy is not always good, meaning it experiences ups and downs. This situation requires forecasting. One of which is the Investment Saving-Liquidity Money business cycle model, which was first introduced by Kalecki in 1935 with the assumption that profits will be saved to be used as initial investment capital, thus causing a delay in the investment process (delay time). The addition of time delay in the system of differential equations causes a change in stability at the equilibrium point so that bifurcation occurs. Another modification given to the model is the use of time delays. The model analyzed in this study is a non-linear IS-LM business cycle model with time delay. Delay time is required for the gross product, capital, and interest rate to be used as an investment. This model was observed in two cases. First Case is a model without time delay. The second case is a model with a time delay. In this case, the critical value of delay is obtained. Hopf bifurcation occurs when the value of delay time is equal to the critical value of delay and satisfies the transversality condition. Observations on the model simulation are carried out by varying the delay time value. When the Hopf bifurcation occurs, the graph on the solution plane shows a constant oscillatory movement. If the value of delay time given is less than the critical value of delay, the controlled system solution goes to a balanced condition. Then when the delay time value is greater than the critical value of delay, the system solution continues to fluctuate, causing an unstable system condition.

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Asymmetric effects of oil shocks on carbon allowance price: Evidence from China

2021

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On the comparative analysis of linear and nonlinear business cycle model: Effect on system dynamics, economy and policy making in general

Cited by 12 publications

References 12 publications

Analysing an epidemic–economic model in the presence of novel corona virus infection: capital stabilization, media effect, and the role of vaccine

Analysing an epidemic–economic model in the presence of novel corona virus infection: capital stabilization, media effect, and the role of vaccine

Bifurkasi Hopf Pada Model Siklus Bisnis Investment Saving-Liquidity Money dengan Waktu Tunda

Asymmetric effects of oil shocks on carbon allowance price: Evidence from China

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