ENDOGENOUS FLUCTUATIONS OF ACTUAL PRICES NEAR NATURAL ONES IN A CLASSICAL GROWTH MODEL

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.