Business Cycle and Conserved Quantity in Economics

Details Business Cycle and Conserved Quantity in Economics Business Cycle and Conserved Quantity in Economics

2008-03-13

arxiv.org/abs/0803.1916v1

Economy

Quantitative Finance

General Finance

13 pages and 10 figures

Scientific paper

10.1143/JPSJ.77.114001

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.

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