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Robust cyclical growth

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  • Anjan Mukherji

Abstract

The stability of cyclical growth within the context of a model in “Growing through cycles” in Econometrica by Matsuyama (1999) is examined. It is shown that but for an extreme situation, the two‐period cycles (two‐cycles) are unique and a range of parameter values that imply the stability of such cyclical growth is derived. The growth enhancing property of two‐cycles are shown to be retained by any cycle; the results of simulation exercises carried out are reported to show that for a very wide range of parameter values, such cyclical growth paths are stable and, therefore, robustness of the conclusions is established.

Suggested Citation

  • Anjan Mukherji, 2005. "Robust cyclical growth," International Journal of Economic Theory, The International Society for Economic Theory, vol. 1(3), pages 233-246, September.
    • Handle: RePEc:bla:ijethy:v:1:y:2005:i:3:p:233-246
    DOI: 10.1111/j.1742-7363.2005.00015.x
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    1. Matsuyama, Kiminori, 2001. "Growing through Cycles in an Infinitely Lived Agent Economy," Journal of Economic Theory, Elsevier, vol. 100(2), pages 220-234, October.
    2. Day, Richard H. & Pianigiani, Giulio, 1991. "Statistical dynamics and economics," Journal of Economic Behavior & Organization, Elsevier, vol. 16(1-2), pages 37-83, July.
    3. Mitra, Tapan, 2001. "A Sufficient Condition for Topological Chaos with an Application to a Model of Endogenous Growth," Journal of Economic Theory, Elsevier, vol. 96(1-2), pages 133-152, January.
    4. Day, Richard H. & Pianigiani, Giulio, 1991. "Statistical Dynamics and Economics," Working Paper Series 293, Research Institute of Industrial Economics.
    5. Kiminori Matsuyama, 1999. "Growing Through Cycles," Econometrica, Econometric Society, vol. 67(2), pages 335-348, March.
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    Cited by:

    1. Ka-Kit Iong & Andreas Irmen, 2020. "The Supply of Hours Worked and Endogenous Growth Cycles," DEM Discussion Paper Series 20-10, Department of Economics at the University of Luxembourg.
    2. Iong, Ka-Kit & Irmen, Andreas, 2021. "The supply of hours worked and fluctuations between growth regimes," Journal of Economic Theory, Elsevier, vol. 194(C).
    3. Shinagawa, Shunsuke, 2013. "Endogenous fluctuations with procyclical R&D," Economic Modelling, Elsevier, vol. 30(C), pages 274-280.
    4. Kikuchi, Tomoo & Vachadze, George, 2015. "Financial liberalization: Poverty trap or chaos," Journal of Mathematical Economics, Elsevier, vol. 59(C), pages 1-9.
    5. Deng, Liuchun & Khan, M. Ali, 2018. "On growing through cycles: Matsuyama’s M-map and Li–Yorke chaos," Journal of Mathematical Economics, Elsevier, vol. 74(C), pages 46-55.
    6. Laura Gardini & Iryna Sushko, 2018. "Growing through chaos in the Matsuyama map via subcritical flip and bistability," Working Papers 1801, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2018.
    7. Gardini, Laura & Sushko, Iryna & Naimzada, Ahmad K., 2008. "Growing through chaotic intervals," Journal of Economic Theory, Elsevier, vol. 143(1), pages 541-557, November.
    8. Makoto Yano & Yuichi Furukawa, 2021. "Two-Dimensional Constrained Chaos and Industrial Revolution Cycles with Mathemetical Appendices," KIER Working Papers 1057, Kyoto University, Institute of Economic Research.
    9. Tramontana, F. & Gardini, L. & Ferri, P., 2010. "The dynamics of the NAIRU model with two switching regimes," Journal of Economic Dynamics and Control, Elsevier, vol. 34(4), pages 681-695, April.
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    11. Gardini, Laura & Sushko, Iryna, 2019. "Growing through chaos in the Matsuyama map via subcritical flip bifurcation and bistability," Chaos, Solitons & Fractals, Elsevier, vol. 124(C), pages 52-67.

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