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ENDOGENOUS FLUCTUATIONS OF ACTUAL PRICES NEAR NATURAL ONES IN A CLASSICAL GROWTH MODEL
Author(s) -
Zhang WeiBin
Publication year - 1991
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1991.tb00362.x
Subject(s) - economics , divergence (linguistics) , proposition , hopf bifurcation , endogenous growth theory , mathematical economics , natural (archaeology) , bifurcation , keynesian economics , dynamics (music) , neoclassical economics , econometrics , physics , market economy , nonlinear system , philosophy , linguistics , archaeology , epistemology , quantum mechanics , acoustics , human capital , history
This paper re‐examines dynamics of the Hosoda classical growth model. We identify the existence of endogenous fluctuations, applying the celebrated Hopf bifurcation theorem. It is shown that the proposition of divergence of actual prices from natural ones of classical economists is valid, even if there are no exogenous forces upon the economic system.