Neo-Keynesian and Neo-Classical Macroeconomic Models: Stability and Lyapunov Exponents
| Author(s): | Ing. Karel Sladký CSc., Jan Kodera prof. Ing. Miloslav Vošvrda CSc., Jan Kodera |
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| Type: | IES Working Papers |
| Year: | 2006 |
| Number: | 10 |
| ISSN / ISBN: | |
| Published in: | IES WP 2006/10 |
| Publishing place: | Prague |
| Keywords: | Macroeconomic models, Keynesian and Classical model, nonlinear differential equations, linearization, asymptotical stability, Lyapunov exponents S |
| JEL codes: | C00, E12, E13 |
| Suggested Citation: | Kodera, J., Sladký, K., Voškrda, M. (2006). “Neo-Keynesian and Neo-Classical Macroeconomic Models: Stability and Lyapunov Exponents” IES Working Paper 10/2006, IES FSV. Charles University. |
| Abstract: | The non-linear approach to economic dynamics enables us to study traditional economic models using modified formulations and different methods of solution. In this article we compare dynamical properties of Keynesian and Classical macroeconomic models. We start with an extended dynamical IS-LM neoclassical model generating behaviour of the real product, interest rate, expected inflation and the price level over time. Limiting behaviour, stability, and existence of limit cycles and other specific features of these models will be compared. |
| Downloadable: |
WP 2006_10 Vosvrda |
