TY - JOUR
T1 - On the dynamic behavior of Schinasi's business cycle model
AU - Sasakura, Kazuyuki
PY - 1994/1/1
Y1 - 1994/1/1
N2 - We investigate thoroughly Schinasi's business cycle model, a disequilibrium IS-LM model augmented by a government budget constraint, in the case of pure money financing. The model has the two- and three-dimensional versions. For the former case, we prove rigorously the existence of limit cycles by the Poincaré-Bendixson theorem and show that three variables of the model, money supply, output and interest rate, correspond to the leading, coincident and lagging indicators of the usual business index, respectively. For the latter case, closed orbits are considered by the Hopf bifurcation theorem and imagination. Finally, the results obtained in the two- and three-dimensional cases are compared.
AB - We investigate thoroughly Schinasi's business cycle model, a disequilibrium IS-LM model augmented by a government budget constraint, in the case of pure money financing. The model has the two- and three-dimensional versions. For the former case, we prove rigorously the existence of limit cycles by the Poincaré-Bendixson theorem and show that three variables of the model, money supply, output and interest rate, correspond to the leading, coincident and lagging indicators of the usual business index, respectively. For the latter case, closed orbits are considered by the Hopf bifurcation theorem and imagination. Finally, the results obtained in the two- and three-dimensional cases are compared.
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U2 - 10.1016/0164-0704(94)90015-9
DO - 10.1016/0164-0704(94)90015-9
M3 - Article
AN - SCOPUS:21344489667
VL - 16
SP - 423
EP - 444
JO - Journal of Macroeconomics
JF - Journal of Macroeconomics
SN - 0164-0704
IS - 3
ER -