<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The two-regional five dimensional model describing the development of income, capital stock and money stock, which was introduced by T. Asada in [<italic>A Two-regional Model of Business Cycles with Fixed Exchange</italic><italic>Rates: A Kaldorian Approach</italic>, Discuss. Paper Ser., No. 44, Chuo University, Tokyo, Japan, 2003] is analysed. Sufficient conditions for the existence of one pair of purely imaginary eigenvalues and three eigenvalues with negative real parts in the linear approximation matrix of the model are found. Theorem on the existence of business cycles is presented.</p></abstract>

The two-regional five dimensional model describing the development of income, capital stock and money stock, which was introduced by T. Asada in [A Two-regional Model of Business Cycles with Fixed ExchangeRates: A Kaldorian Approach, Discuss. Paper Ser., No. 44, Chuo University, Tokyo, Japan, 2003] is analysed. Sufficient conditions for the existence of one pair of purely imaginary eigenvalues and three eigenvalues with negative real parts in the linear approximation matrix of the model are found. Theorem on the existence of business cycles is presented.

Can business cycles arise in a two-regional model with fixed exchange rates?

Department of Mathematics Faculty of Natural Sciences Matej Bel University Tajovského 40 SK–974-01 Bansk´a Bystrica SLOVAKIA

Department of Quantitative Methods and Informatics Faculty of Economics Matej Bel University Tajovského 10 SK–975-50 Bansk´a Bystrica SLOVAKIA

Tatra Mountains Mathematical Publications

{"article-title":"Can business cycles arise in a two-regional model with fixed exchange rates?"}

The two-regional five dimensional model describing the development of income, capital stock and money stock, which was introduced by T. Asada in [A...

Can business cycles arise in a two-regional model with fixed exchange rates?

Published Online: Nov 12, 2012

Page range: 123 - 135

DOI: https://doi.org/10.2478/v10127-009-0032-7

Keywords
dynamical model, equilibrium, matrix of linear approximation, eigenvalues, normal form of differential equations on invariant surface, bifurcation equation, business cycle

This content is open access.

Can business cycles arise in a two-regional model with fixed exchange rates?

Published Online: Nov 12, 2012

Page range: 123 - 135

DOI: https://doi.org/10.2478/v10127-009-0032-7

Keywordsdynamical model, equilibrium, matrix of linear approximation, eigenvalues, normal form of differential equations on invariant surface, bifurcation equation, business cycle

This content is open access.

Keywords
dynamical model, equilibrium, matrix of linear approximation, eigenvalues, normal form of differential equations on invariant surface, bifurcation equation, business cycle