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The business cycle model with a unique stable limit cycle

Article Abstract:

A mathematical foundation was provided for the academic community's traditional belief that Richard M. Goodwin's nonlinear business cycle model developed in 1951 possesses a unique stable limit cycle. The model has a unique stable limit cycle in an economically significant region despite the investment function's asymmetric nonlinearity. Emanating from any starting point in the region, solution paths gravitate toward the limit cycle without exiting the region or reaching the upper and lower limits of investment during a transition period.

Models, Business cycles

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Approaches to economic equilibrium

Article Abstract:

Mechanisms that help to explain how and why equilibrium is eventually achievable in many economic scenarios, including competitive markets and several noncooperative games. The main goal is an adaptive process that shows a repeated adjustment of individual strategies and leads to equilibrium under conditions of monotonicity. Results show that in the long run, individual optimality and system equilibrium are obtainable.

Research, Equilibrium (Economics)

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