Multiple steady states and endogenous fluctuations with increasing returns to scale in production

Article Abstract:

A model is developed wherein external and internal increasing returns to scale in production is made to influence the elasticity of capital-labor susbsititutions and the elasticity of labor supply. Particular emphasis on monitoring the influence of such factors on multiple-Pareto ranked stationary equilibria, local indeterminacy, bifurcations and expectations-driven fluctuations were noted. An interesting sidelight of the research was the inapplicability of the Cobb-Douglas model to the problem since the closed-form solutions of the model is misleading in terms of the measure of elasticities.

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Introduction to market psychology and nonlinear endogenous business cycles

Article Abstract:

A characterization of the market through the use of multiple equilibria and endogenous fluctuations was effected by distilling the models into a simple two-dimensional macroeconomic model that uses a single predetermined value. The model is based on the sunspot concept and generates invariance properties by the description of stochastic endogenous fluctuations near a stationary state and along local bifurcations.

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Capital-labor substitution and competitive nonlinear endogenous business cycles

Article Abstract:

A discrete time two-dimensional macroeconomic model was developed that related deterministic or stochastic endogenous fluctuations to the possible presence of invariant closed curves or cycles near a steady state. Applying the model on the capital-labor substitution problem yielded a simple macroeconomic monetary model where low elasticities between capital and labor were observed.

Research, Work, Work (Labor), Capital

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