Richard M. Goodwin
- Published in print:
- 1990
- Published Online:
- November 2003
- ISBN:
- 9780198283355
- eISBN:
- 9780191596315
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198283350.003.0009
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Takes a new look, in the light of advances in chaotic dynamics, at the archetypal cycle models by Hansen–Samuelson and Lundberg–Metzler. The Metzler model, which produces simple harmonic motion, is ...
More
Takes a new look, in the light of advances in chaotic dynamics, at the archetypal cycle models by Hansen–Samuelson and Lundberg–Metzler. The Metzler model, which produces simple harmonic motion, is expanded to allow for non‐linearities. By locating the model within the Rössler band, aperiodic cycles of approximately three years can result. Similarly, a single non‐linearity, as in Rössler, is added to the Hansen–Samuelson model.Less
Takes a new look, in the light of advances in chaotic dynamics, at the archetypal cycle models by Hansen–Samuelson and Lundberg–Metzler. The Metzler model, which produces simple harmonic motion, is expanded to allow for non‐linearities. By locating the model within the Rössler band, aperiodic cycles of approximately three years can result. Similarly, a single non‐linearity, as in Rössler, is added to the Hansen–Samuelson model.
Richard M. Goodwin
- Published in print:
- 1990
- Published Online:
- November 2003
- ISBN:
- 9780198283355
- eISBN:
- 9780191596315
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198283350.003.0008
- Subject:
- Economics and Finance, Macro- and Monetary Economics
The control variable in the previous chapter is interpreted here as public net income‐generating expenditure. In the absence of compensatory policy, the model of the previous chapter results in a ...
More
The control variable in the previous chapter is interpreted here as public net income‐generating expenditure. In the absence of compensatory policy, the model of the previous chapter results in a highly irregular time series and maximum unemployment of 12%. In contrast, almost perfect smoothing is possible by large and rapid intervention, based upon derivative control, at the early stages of the fluctuation. The addition of proportional control can ensure that equilibrium unemployment falls gradually to an appropriately low level. Problems of implementation are discussed.Less
The control variable in the previous chapter is interpreted here as public net income‐generating expenditure. In the absence of compensatory policy, the model of the previous chapter results in a highly irregular time series and maximum unemployment of 12%. In contrast, almost perfect smoothing is possible by large and rapid intervention, based upon derivative control, at the early stages of the fluctuation. The addition of proportional control can ensure that equilibrium unemployment falls gradually to an appropriately low level. Problems of implementation are discussed.
Richard M. Goodwin
- Published in print:
- 1990
- Published Online:
- November 2003
- ISBN:
- 9780198283355
- eISBN:
- 9780191596315
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198283350.003.0007
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Seeks to fuse the insights of Schumpeter and Keynes with the argument that market conditions force unrelated innovatory investment decisions to march in step. Aggregate demand matters, therefore, and ...
More
Seeks to fuse the insights of Schumpeter and Keynes with the argument that market conditions force unrelated innovatory investment decisions to march in step. Aggregate demand matters, therefore, and the Kahn–Keynes multiplication of expansive and contractive demand provides the missing link. A model is developed in which a control variable stabilizes the system globally while allowing erratic motion locally. The model is extended so that for a 50‐year logistic with plausible parameters, higher output after each wave is guaranteed without assuming full employment. The model is extended to account for the influence of demand on investment.Less
Seeks to fuse the insights of Schumpeter and Keynes with the argument that market conditions force unrelated innovatory investment decisions to march in step. Aggregate demand matters, therefore, and the Kahn–Keynes multiplication of expansive and contractive demand provides the missing link. A model is developed in which a control variable stabilizes the system globally while allowing erratic motion locally. The model is extended so that for a 50‐year logistic with plausible parameters, higher output after each wave is guaranteed without assuming full employment. The model is extended to account for the influence of demand on investment.
