Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64223
Authors: 
Ryoo, Soon
Year of Publication: 
2009
Series/Report no.: 
Working Paper, University of Massachusetts, Department of Economics 2009-03
Abstract: 
This paper presents a stock-flow consistent macroeconomic model in which financial fragility in firm and household sectors evolves endogenously through the interaction between real and financial sectors. Changes in firms' and households' financial practices produce long waves. The Hopf bifurcation theorem is applied to clarify the conditions for the existence of limit cycles, and simulations illustrate stable limit cycles. The long waves are characterized by periodic economic crises following long expansions. Short cycles, generated by the interaction between effective demand and labor market dynamics, fluctuate around the long waves.
Subjects: 
cycles
long waves
financial fragility
stock-flow consistency
JEL: 
E12
E32
E44
Document Type: 
Working Paper

Files in This Item:
File
Size
429.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.