Finding an Example of an Optimising Agent with Cyclical Behaviour
by Dr Peter Stemp
Abstract: Most recent studies of dynamic macroeconomic relationships focus on models derived from optimising behaviour by economic agents. In most of these models, the eigenvalues of the associated dynamical system are real-valued and so the time-path of the system exhibits monotonic or near monotonic behaviour. While, it is well-known that linear dynamic models with complex-valued eigenvalues exhibit the property of oscillatory dynamic behaviour, limited research has been undertaken to investigate the properties of optimising models with oscillatory behaviour. In this study, we focus on producing an example of an optimising agent whose dynamics are
characterised by complex-valued eigenvalues and who thus exhibits cyclical behaviour.
For More Information: Mark Fackrell tel. 8344 8053 email: firstname.lastname@example.org