Abstract

In this paper we investigate the economic dynamics of a seven-equation model of the business cycle. The main distinctive features of the model are related to: (a) the role played by the public sector in redeploying income between workers and capitalists, since it is assumed that the bargaining power of the two classes affects tax rates and transfers levied upon them; (b) the influence that past events have on the agents’ current behavior, with particular regard to consumption patterns; (c) the specification of firms’ investment function, which incorporate Keynesian and Harrodian elements by assuming that investments are a function of both the difference between interest and profit rate and the discrepancy between actual and desired capital to output ratio. Since all these assumptions imply possible balance sheets disequilibrium, particular regard is dedicated to the analysis of macroagents’ debt dynamics. Special emphasis is placed on the analysis of the destabilization of equilibria via Hopf bifurcations, which leads to the emergence of an interesting and rich cyclical dynamics.

Autore Pugliese

• Colacchio Giorgio

Tutti gli autori

• G. Colacchio

Titolo volume/Rivista

JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION

Anno di pubblicazione

2014

ISSN

0167-2681

ISBN

Non Disponibile

Numero di citazioni Wos

Nessuna citazione

Ultimo Aggiornamento Citazioni

Non Disponibile

Numero di citazioni Scopus

Non Disponibile

Ultimo Aggiornamento Citazioni

Non Disponibile

Settori ERC

Non Disponibile

Codici ASJC

Non Disponibile