Bifurcation analysis of a Kaldor-Kalecki model of business cycle with time delay

Liancheng Wang, Kennesaw State University, Kennesaw, GA, U.S.A.
Xiaoqin P. Wu, Mississippi Valley State University, Itta Bena, MS, U.S.A.

E. J. Qualitative Theory of Diff. Equ., Spec. Ed. I, 2009 No. 27., pp. 1-20.

Abstract: In this paper, we investigate a Kaldor-Kalecki model of business cycle with delay in both the gross product and the capital stock. Stability analysis for the equilibrium point is carried out. We show that Hopf bifurcation occurs and periodic solutions emerge as the delay crosses some critical values. By deriving the normal forms for the system, the direction of the Hopf bifurcation and the stability of the bifurcating periodic solutions are established. Examples are presented to confirm our results.

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