Bifurcations and Switch Points

25 Pages Posted: 29 Jun 2017  

Robert L. Vienneau

Independent

Date Written: June 28, 2017

Abstract

This article analyzes structural instabilities, in a model of prices of production, associated with variations in coefficients of production, in industrial organization, and in the steady-state rate of growth. Numerical examples are provided, with illustrations, demonstrating that technological improvements or the creation of differential rates of profits can create a reswitching example. Variations in the rate of growth can change a "perverse" switch point into a normal one or vice versa. These results seem to have implications for the stability of short-period dynamics and suggest an approach to sensitivity analysis for certain empirical results regarding the presence of Sraffa effects.

Keywords: bifurcation analysis, choice of technique, reswitching, capital reversing

JEL Classification: B24, D24, D43

Suggested Citation

Vienneau, Robert L., Bifurcations and Switch Points (June 28, 2017). Available at SSRN: https://ssrn.com/abstract=2993913

Robert L. Vienneau (Contact Author)

Independent ( email )

209 Maple Street
Rome, NY 13440
315-336-5417 (Phone)
315-334-4964 (Fax)

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