Search Results

No results found.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:Perturbation (Mathematics) 

Working Paper
Diagnosing and treating bifurcations in perturbation analysis of dynamic macro models

In perturbation analysis of nonlinear dynamic systems, the presence of a bifurcation implies that the first-order behavior of the economy cannot be characterized solely in terms of the first-order derivatives of the model equations. In this paper, we use two simple examples to illustrate how to detect the existence of a bifurcation. Following the general approach of Judd (1998), we then show how to apply l'Hospital's rule to characterize the solution of each model in terms of its higher-order derivatives. We also show that in some cases the bifurcation can be eliminated through ...
Finance and Economics Discussion Series , Paper 2007-14

FILTER BY Content Type

FILTER BY Author

FILTER BY Keywords

PREVIOUS / NEXT