Endogenous Cycles in a Keen--Goodwin Model with Minsky Debt
Dynamical Systems
2026-04-01 v1 Classical Analysis and ODEs
Abstract
We analyze a three-dimensional Keen--Goodwin model that couples wage--employment dynamics with Minsky-style private debt. At zero real interest the interior equilibrium is nonhyperbolic and organized by a two-dimensional center manifold foliated by neutral Goodwin cycles. Introducing a small positive interest rate unfolds this degeneracy: we derive an explicit Hopf condition, prove persistence of the center manifold as a normally hyperbolic attracting surface, and obtain first-order amplitude and frequency corrections for the emergent limit cycle via phase--amplitude reduction. Numerical simulations support the asymptotic predictions and demonstrate how interest rates determine and modulate endogenous business cycles.
Cite
@article{arxiv.2603.29178,
title = {Endogenous Cycles in a Keen--Goodwin Model with Minsky Debt},
author = {Roberto Albarrán-García and Martha Alvarez-Ramírez and Carlos García-Azpeitia},
journal= {arXiv preprint arXiv:2603.29178},
year = {2026}
}
Comments
17 pages, 3 figures