Discrete Dynamics in Nature and Society
Volume 1 (1997), Issue 3, Pages 203-217
Endogenous oscillations in a discrete dynamic model with inventory
Niigata University, Department of Economics, 8050, 2-No-cho, Ikarashi, Niigata 950-21, Japan
Received 15 June 1996
Copyright © 1997 Akio Matsumoto. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Introducing the producer's intertemporal optimizing behavior, we extend the Eckalbar Disequilibrium Macro-Model (1985) and reconsider the dynamic features of the modified model. We concern ourselves with the existence of inventory cycles when the expectations are formed adaptively. The endogenous inventory cycle is detected using the Hopf bifurcation theorem in which a bifurcation parameter is an adaptive coefficient. It is also demonstrated that the generated cycle is subcritical.