Short-run inventory oscillations in the Eckalbar disequilibrium macro model

摘要

The paper generalizes the Eckalbar inventory model by introducing a nonlinear adjustment function of production. We especially concern ourselves with the existence of limit cycles in the system. It is shown that economic fluctuations can be created endogeneously, rather than by switching the control equation of the economic system. The Hopf bifurcation theorem is applied to establish the existence of limit cycles.