Hopf bifurcation of a financial dynamical system with delay

Yasemin Çalış, Ali Demirci, Cihangir Özemir*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

The aim of this work is to investigate the qualitative behaviour of a financial dynamical system which contains a time delay. We investigate the dynamic response of this system of which variables are interest rate, investment demand, price index and average profit margin. As a plus to the available literature, the model investigated takes into account a timed delayed feedback in the investment demand. We perform a stability analysis at the fixed points and show that the system undergoes a Hopf bifurcation using well-known methods of stability analyses for delayed systems. The bifurcation analyses are supported by numerical simulations. The analysis reveals that for a set of parameters for which the non-delayed system is stable, a delay in the investment demand may drive the system to instability.

Original languageEnglish
Pages (from-to)343-361
Number of pages19
JournalMathematics and Computers in Simulation
Volume201
DOIs
Publication statusPublished - Nov 2022

Bibliographical note

Publisher Copyright:
© 2022 International Association for Mathematics and Computers in Simulation (IMACS)

Keywords

  • Delayed financial model
  • Hopf bifurcation
  • Stability analysis

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