IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v13y2001i3p329-341.html
   My bibliography  Save this article

Time Delays and Business Cycles: Hilferding's model revisited

Author

Listed:
  • Ghassan Dibeh

Abstract

This paper develops a Marxian model of the business cycle based on Hilferding's theory of disproportionality in capital accumulation in a two-sector economy. The disproportionality arises from the existence of time delays in production generated by the differential capital intensity in the two sectors. The time delays produce an asymmetric price structure that causes overproduction and crisis. The model is constructed using delay-differential equations. Numerical simulations show that the model produces an economy-wide business cycle phenomenon. The domain of the time delay parameter is investigated, and shows that the model produces a wide variety of dynamics from monotonic convergence to explosive oscillations. Moreover, the solution shows that intersectoral investment flows transmit the instability in capital accumulation and that longer time delays produce higher cycle amplitudes.

Suggested Citation

  • Ghassan Dibeh, 2001. "Time Delays and Business Cycles: Hilferding's model revisited," Review of Political Economy, Taylor & Francis Journals, vol. 13(3), pages 329-341.
    • Handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:329-341
    DOI: 10.1080/09538250120055177
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09538250120055177
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09538250120055177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Asea, Patrick K. & Zak, Paul J., 1999. "Time-to-build and cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 23(8), pages 1155-1175, August.
    2. Norrbin, Stefan C & Schlagenhauf, Don E, 1991. "The Importance of Sectoral and Aggregate Shocks in Business Cycles," Economic Inquiry, Western Economic Association International, vol. 29(2), pages 317-335, April.
    3. Darity, William A, Jr & Horn, Bobbie L, 1985. "Rudolf Hilferding: The Dominion of Capitalism and the Dominion of Gold," American Economic Review, American Economic Association, vol. 75(2), pages 363-368, May.
    4. Victor Zarnowitz, 1992. "Business Cycles: Theory, History, Indicators, and Forecasting," NBER Books, National Bureau of Economic Research, Inc, number zarn92-1.
    5. Long, John B, Jr & Plosser, Charles I, 1983. "Real Business Cycles," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 39-69, February.
    6. Roger E. A. Farmer, 1999. "Macroeconomics of Self-fulfilling Prophecies, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262062038, April.
    7. Zarnowitz, Victor, 1992. "Business Cycles," National Bureau of Economic Research Books, University of Chicago Press, number 9780226978901.
    8. Joseph E. Stiglitz, 1991. "Methodological Issues and the New Keynesian Economics," NBER Working Papers 3580, National Bureau of Economic Research, Inc.
    9. Douglas Gale, 1996. "Delay and Cycles," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 63(2), pages 169-198.
    10. Harris, Donald J, 1983. "Accumulation of Capital and the Rate of Profit in Marxian Theory," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 7(3-4), pages 311-330, September.
    11. Long, John B, Jr & Plosser, Charles I, 1987. "Sectoral vs. Aggregate Shocks in the Business Cycle," American Economic Review, American Economic Association, vol. 77(2), pages 333-336, May.
    12. Simon Kuznets, 1930. "Equilibrium Economics and Business-Cycle Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 44(3), pages 381-415.
    13. Eagly, Robert V, 1972. "A Macro Model of the Endogenous Business Cycle in Marxist Analysis," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 523-539, May-June.
    14. Ghassan Dibeh, 1995. "A Classical-Keynesian Model of Macroeconomic Fluctuations," Review of Radical Political Economics, Union for Radical Political Economics, vol. 27(3), pages 12-21, September.
    15. Mackey, Michael C., 1989. "Commodity price fluctuations: Price dependent delays and nonlinearities as explanatory factors," Journal of Economic Theory, Elsevier, vol. 48(2), pages 497-509, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Victor Zarnowitz, 1997. "Business Cycles Observed and Assessed: Why and How They Matter," NBER Working Papers 6230, National Bureau of Economic Research, Inc.
    2. Kang, Gi Choon & Orazem, Peter F., 2003. "The relative importance of aggregate and disaggregate shocks in Korean business cycles," Journal of Asian Economics, Elsevier, vol. 14(3), pages 419-434, June.
    3. Bordo, Michael D. & Haubrich, Joseph G., 2010. "Credit crises, money and contractions: An historical view," Journal of Monetary Economics, Elsevier, vol. 57(1), pages 1-18, January.
    4. Naohito Abe, 2004. "The Multi‐Sector Business Cycle Model and Aggregate Shocks: An Empirical Analysis," The Japanese Economic Review, Japanese Economic Association, vol. 55(1), pages 101-118, March.
    5. Satyajit Chatterjee, 1999. "Real business cycles: a legacy of countercyclical policies?," Business Review, Federal Reserve Bank of Philadelphia, issue Jan, pages 17-27.
    6. Lippi, Marco & Reichlin, Lucrezia & Hallin, Marc & Forni, Mario & Altissimo, Filippo & Cristadoro, Riccardo & Veronese, Giovanni & Bassanetti, Antonio, 2001. "EuroCOIN: A Real Time Coincident Indicator of the Euro Area Business Cycle," CEPR Discussion Papers 3108, C.E.P.R. Discussion Papers.
    7. Mark Schankerman, 1991. "Revisions of Investment Plans and the Stock Market Rate of Return," STICERD - Economics of Industry Papers 05, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    8. Keen Meng Choy & Hwee Kwan Chow, 2004. "Forecasting the Global Electronics Cycle with Leading Indicators: A VAR Approach," Econometric Society 2004 Australasian Meetings 223, Econometric Society.
    9. Farmer, Roger E. A. & Jang-Ting, Guo, 1995. "The econometrics of indeterminacy: an applied study," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 43(1), pages 225-271, December.
    10. Robert H. McGuckin & Ataman Ozyildirim, 2004. "Real-Time Tests of the Leading Economic Index: Do Changes in the Index Composition Matter?," Journal of Business Cycle Measurement and Analysis, OECD Publishing, Centre for International Research on Economic Tendency Surveys, vol. 2004(2), pages 171-191.
    11. Kitagawa, Akiomi & Shibata, Akihisa, 2001. "Long gestation in an overlapping generations economy: endogenous cycles and indeterminacy of equilibria," Journal of Mathematical Economics, Elsevier, vol. 35(1), pages 99-127, February.
    12. Heilemann, Ullrich & Münch, Heinz Josef, 2005. "The Clinton era and the U.S. business cycle : what did change?," Technical Reports 2005,12, Technische Universität Dortmund, Sonderforschungsbereich 475: Komplexitätsreduktion in multivariaten Datenstrukturen.
    13. Robert E. Carpenter & Steven M. Fazzari & Bruce C. Petersen, 1994. "Inventory (Dis)Investment, Internal Finance Fluctuations, and the Business Cycle," Macroeconomics 9401001, University Library of Munich, Germany.
    14. Giovanni Gallipoli & Gianluigi Pelloni, 2013. "Macroeconomic Effects of Job Reallocations: A Survey," Review of Economic Analysis, Digital Initiatives at the University of Waterloo Library, vol. 5(2), pages 127-176, December.
    15. Patrick Artus & François Lecointe, 1993. "Quelle est la configuration des cycles aux États-Unis ? Une modélisation dynamique traditionnelle," Économie et Prévision, Programme National Persée, vol. 107(1), pages 1-14.
    16. Victor Zarnowitz, 1999. "Has the Business Cycle Been Abolished?," NBER Working Papers 6367, National Bureau of Economic Research, Inc.
    17. Luis Fernando Melo & Fabio H. Nieto & Carlos Esteban Posada & Yanneth Rocío Betancourt, 2001. "Un Índice Coincidente para la Actividad Económica Colombiana," Borradores de Economia 3678, Banco de la Republica.
    18. Jan Jacobs & Jan-Egbert Sturm, 2005. "Do Ifo Indicators Help Explain Revisions in German Industrial Production?," Contributions to Economics, in: Jan-Egbert Sturm & Timo Wollmershäuser (ed.), Ifo Survey Data in Business Cycle and Monetary Policy Analysis, pages 93-114, Springer.
    19. Nelson H. Barbosa Filho, 2005. "Estimating Potential Output : a Survey of the Alternative Methods and their Applications to Brazil," Discussion Papers 1092, Instituto de Pesquisa Econômica Aplicada - IPEA.
    20. Sean Holly & Ivan Petrella, 2012. "Factor Demand Linkages, Technology Shocks, and the Business Cycle," The Review of Economics and Statistics, MIT Press, vol. 94(4), pages 948-963, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:13:y:2001:i:3:p:329-341. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.