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A note on the “unique” business cycle in the Keynesian theory
Author(s) -
Murakami Hiroki
Publication year - 2019
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/meca.12222
Subject(s) - uniqueness , investment function , consumption function , business cycle , economics , profit (economics) , consumption (sociology) , mathematical economics , keynesian economics , limit cycle , investment (military) , new keynesian economics , function (biology) , limit (mathematics) , neoclassical economics , microeconomics , mathematics , mathematical analysis , production (economics) , monetary policy , fiscal policy , social science , sociology , politics , evolutionary biology , political science , law , biology
In this paper, we explore the existence and “uniqueness” of a limit cycle in the Keynesian theory. In a model with the simplest (linear) Keynesian consumption function and the logistic investment function based upon the profit principle, we establish the existence of a periodic orbit (irrespective of the speed of quantity adjustment) and, with the help of the theory on generalized Liénard systems, verify the uniqueness of it for the case in which the speed of quantity adjustment is large enough.