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Switch Points and Normal Forms for Bifurcations

32 Pages Posted: 3 Aug 2017  

Robert L. Vienneau

Independent

Date Written: July 31, 2017

Abstract

The choice of technique can be analyzed, in a circulating-capital model of prices of production, by constructing the wage frontier. Switch points arise when more than one technique is cost-minimizing for a specified rate of profits. This article defines four normal forms for structural bifurcations, in which the number and sequence of switch points varies with a variation in one model parameter, such as a coefficient of production. The ’perversity’ of switch points that appear on and disappear from the wage frontier is analyzed. The conjecture is made that no other normal forms exist of co-dimension one.

Keywords: Bifurcation Analysis, Choice of Technique, Reswitching, Capital-Reversing

JEL Classification: B24, D24

Suggested Citation

Vienneau, Robert L., Switch Points and Normal Forms for Bifurcations (July 31, 2017). Available at SSRN: https://ssrn.com/abstract=3011850

Robert Vienneau (Contact Author)

Independent ( email )

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

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