In this paper, we consider a model of economic growth with a distributed time-delay investment function, where the time-delay parameter is a mean time delay of the gamma distribution. Using the linear chain trick technique, we transform the delay differential equation system into an equivalent one of ordinary differential equations (ODEs). Since we are dealing with weak and strong kernels, our system will be reduced to a three- and four-dimensional ODE system, respectively. The occurrence of Hopf bifurcation is investigated with respect to the following two parameters: time-delay parameter and rate of growth parameter. Sufficient criteria on the existence and stability of a limit cycle solution through the Hopf bifurcation are presented in case of time-delay parameter. Numerical studies with the Dana and Malgrange investment function show the emergence of two Hopf bifurcations with respect to the rate growth parameter. In this case, we have been able to detect the existence of stable long-period cycles in the economy. According to the time-delay and adjustment speed parameters, the range of admissible values of the rate of growth parameter breaks down into three intervals. First, we have stable focus, then the limit cycle and finally again the stable solution with two Hopf bifurcations. Such behavior appears for some middle interval of the admissible range of values of the rate of growth parameter.

Bifurcations in an economic growth model with a distributed time delay transformed to ODE / Guerrini, L.; Krawiec, A.; Szydlowski, M.. - In: NONLINEAR DYNAMICS. - ISSN 0924-090X. - 101:2(2020), pp. 1263-1279. [10.1007/s11071-020-05824-y]

Bifurcations in an economic growth model with a distributed time delay transformed to ODE

Guerrini L.;
2020-01-01

Abstract

In this paper, we consider a model of economic growth with a distributed time-delay investment function, where the time-delay parameter is a mean time delay of the gamma distribution. Using the linear chain trick technique, we transform the delay differential equation system into an equivalent one of ordinary differential equations (ODEs). Since we are dealing with weak and strong kernels, our system will be reduced to a three- and four-dimensional ODE system, respectively. The occurrence of Hopf bifurcation is investigated with respect to the following two parameters: time-delay parameter and rate of growth parameter. Sufficient criteria on the existence and stability of a limit cycle solution through the Hopf bifurcation are presented in case of time-delay parameter. Numerical studies with the Dana and Malgrange investment function show the emergence of two Hopf bifurcations with respect to the rate growth parameter. In this case, we have been able to detect the existence of stable long-period cycles in the economy. According to the time-delay and adjustment speed parameters, the range of admissible values of the rate of growth parameter breaks down into three intervals. First, we have stable focus, then the limit cycle and finally again the stable solution with two Hopf bifurcations. Such behavior appears for some middle interval of the admissible range of values of the rate of growth parameter.
2020
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11566/284181
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