A Further Study of a Nonsmooth Dynamical Economic Model

摘要

A macro-economic model of business cycles, the so-called Hicksian multiplier-accelerator model with floor-roof limits to investments, is proposed by Samuelson [14], modified by Hicks [10] and further studied in depth in [15], [8], [16], [2], [13], etc. By extending ranges of parameters of the model studied in [15] while ignoring their physical implications, this paper further investigates complicated nonlinear phenomena inside this model. It is argued in [15] that chaotic behavior is excluded in this model; however, it is shown in this paper that, by extending system parameter ranges, chaotic behavior does occur.