Persistent fluctuations in a dual model with frictions: The role of delays

摘要

This article studies the dynamics in a simple dual model where agents may shift from the traditional sector to the manufacturing one. We show that a delay between the exit from the traditional sector and the possibility to be employed in the manufacturing one is a source of endogenous fluctuations. In particular, by choosing time delay as the bifurcation parameter, it is proved that the system may lose stability and a supercritical Hopf bifurcation occurs when time delay passes through a critical value.