Finance Discipline Group
UTS Business School
University of Technology, Sydney

Working Paper Series

Title:
Towards Applied Disequilibrium Growth Theory: III Basic Partial Feedback Structures and Stability Issues
Author(s): Carl Chiarella & Peter Flaschel
Date of publication: December 1999
Working paper number: 95
Abstract:
In this paper we consider the 18D case model of applied disequilibrium growth whose extensive and intensive form dynamics we derived in earliier work. Here we analyze in particular the basic partial feedback mechanisms whose interaction drives the dynamics of the overall model. We relate these mechanisms with the names of the economists who originally identified them (usually as isolated mechanisms) e.g., Goodwin, Rose, Keynes, Tobin, Dornbusch and Blanchard. A large part of our analysis is devoted to a study of the factors causing these mechanisms to display stabilizing or destabilizing tendencies. We also discuss some nonlinear mechanisms which may 'tame' the explosive tendencies of the economy in situations of local instability.
Known citations:

Chiarella, C. and Flaschel, P., 1999a, "Towards Applied Disequilibrium Growth Theory: I The Starting Model", Working Paper: 93, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C. and Flaschel, P., 1999b, "Towards Applied Disequilibrium Growth Theory: II Intensive Form and Steady State Analysis of the Model", Working Paper: 94, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C. and Flaschel, P., 2003, "Towards Applied Disequilibrium Growth Theory: V Housing Investment Cycles, Private Debt Accumulation and Deflation", Working Paper: 97, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C., Flaschel, P., Groh, G., Koper, C. and Semmler, W., 1999a, "Towards Applied Disequilibrium Growth Theory: VI Substitution, Money-Holdings, Wealth-Effects and Further Extensions", Working Paper: 98, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C., Flaschel, P., Groh, G., Koper, C. and Semmler, W., 1999b, "Towards Applied Disequilibrium Growth Theory: VII Intensive Form and Steady State Calculation in the Case of Substitution", Working Paper: 99, Finance Discipline Group, University of Technology, Sydney.

Chiarella, C., Flaschel, P. and Semmler, W., 1999, "The Macrodynamics of Debt Deflation", Working Paper: 7, Center for Economic Policy Analysis, New School for Social Research.

Chiarella, C., Flaschel, P. and Zhu, P., 2003, "Towards Applied Disequilibrium Growth Theory: IV Numerical Investigations of the Core 18D Model", Working Paper: 96, Finance Discipline Group, University of Technology, Sydney.

Flaschel, P., 20, "Disequilibrium Growth in Monetary Economies: Basic Components and the KMG Working Model", In Lionello F. Punzo (ed) Cycles, Growth and Structural Change, 128-168.