A NONLINEAR BUSINESS CYCLE MODEL IN DISCRETE TIME |
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Authors: | Kunal Sen |
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Abstract: | The paper develops a simple multiplier-accelerator model of a market economy, where the strength of the accelerator relationship between current investment and past output depends on the state of the economy. It is found that the greater the values of the multiplier and the accelerator, the more persistent and aperiodic («chaotic») would be the cyclical behaviour of the economy. |
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