Politická ekonomie 2006, 54(3):339-350 | DOI: 10.18267/j.polek.562

Produkt, kapitál a cenový pohyb v jednoduchém modelu uzavřené ekonomiky

Jan Kodera, Miloslav Voąvrda
1 Ústav teorie informace a automatizace, Akademie věd České republiky, Vysoká ąkola ekonomická v Praze, Bratislavská vysoká ąkola práva.
2 Ústav teorie informace a automatizace, Akademie věd České republiky.

Product, capital stock and price dynamics in a simple model of closed economy

A purpose of this paper is to formulate a continuous dynamical model for a small closed economy with a simple structure and with a minimum number of non-linearities. A basis of this model is developed from dynamical Kaldorian model. Variables in the modified dynamical Kaldorian model are in a logarithm scale. A form of the logistic function is used for non-linear connections in this model. The model is formed by four differential equations. First two equations create relatively closed sub-model generating both production and capital stock trajectories. Two other equations describe the price level dynamics as a consequence of money market disequilibrium and continuously adaptive expectation of inflation. Our investigation is firstly aimed to investigate a dynamics of the production and capital stock. Secondly to compute Ljapunov exponents for a simple model of closed economy showing its a chaotic behavior. Simulation studies are performed on numerical calibrated model.

Keywords: propensity to save, investment ratio, expected inflation, nonlinear system, and price dynamics
JEL classification: E44

Published: June 1, 2006  Show citation

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Kodera, J., & Voąvrda, M. (2006). Product, capital stock and price dynamics in a simple model of closed economy. Politická ekonomie, 54(3), 339-350. doi: 10.18267/j.polek.562
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