Periodic, almost periodic and chaotic behaviour in Hicks' non-linear trade cycle model

Open Access
Authors
Publication date 1993
Journal Economics Letters
Volume | Issue number 41 | 4
Pages (from-to) 391-397
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
Abstract Hicks' non-linear trade cycle model is an unstable multiplier-accelerator model together with an ‘income ceiling’ and an ‘investment floor’. We show that in the simplest, two-dimensional version of the model the income time paths are always regular: either periodic or almost periodic (quasi-periodic) behaviour occurs. When consumption and/or investment is distributed over several time periods, higher dimensional versions of the model are obtained. We show that in the three-dimensional Hicks model irregular, chaotic income time paths may occur.
Document type Article
Language English
Published at https://doi.org/10.1016/0165-1765(93)90211-T
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