Dynamics in a nonlinear Keynesian good market model.
In this paper, we show how a rich variety of dynamical behaviors can emerge in the standard Keynesian income-expenditure model when a nonlinearity is introduced, both in the cases with and without endogenous government spending. A specific sigmoidal functional form is used for the adjustment mechanism of income with respect to the excess demand, in order to bound the income variation. With the aid of analytical and numerical tools, we investigate the stability conditions, bifurcations, as well as periodic and chaotic dynamics. Globally, we study multistability phenomena, i.e., the coexistence of different kinds of attractors.
Department of Economics, Quantitative Methods and Management, University of Milano-Bicocca, U7 Building, Via Bicocca degli Arcimboldi 8, 20126 Milano, Italy.
Ahmad
A
Naimzada
Department of Mathematics and Applications, University of Milano-Bicocca, U5 Building, Via Cozzi 55, 20125 Milano, Italy.
Marina
M
Pireddu
D006801:Humans; D040541:Marketing; D018803:Models, Economic; D017711:Nonlinear Dynamics