Business Cycle and Conserved Quantity in Economics
General Finance
2009-11-13 v1 Physics and Society
Abstract
We propose a dynamical model for business cycle based on an optimal DI model. In the model there exists a conserved quantity, which corresponds to the total energy in a dynamical system. We found that the business cycle with the period 6 or 7 years is nicely reproduced, since the model predicts a periodic motion in the conservative system.
Cite
@article{arxiv.0803.1916,
title = {Business Cycle and Conserved Quantity in Economics},
author = {Masa-aki Taniguchi and Masako Bando and Akihiro Nakayama},
journal= {arXiv preprint arXiv:0803.1916},
year = {2009}
}
Comments
13 pages and 10 figures