A generalized dynamic IS-LM model with delayed time in investment processes

摘要

In this paper we analyze a generalized dynamic IS-LM model with a government expenditure constraint and the capital accumulation equation that capital stock changes are caused by past investment decisions according to Kalecki's idea of time delay in investment processes. Applying "stability switch criteria", we prove that the time delay causes the equilibrium point may lose or gain local stability, so that the Hopf bifurcation occurs. (C) 2007 Elsevier Inc. All rights reserved.