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 language | English |
|---|---|
| Pages (from-to) | 343-361 |
| Number of pages | 19 |
| Journal | Mathematics and Computers in Simulation |
| Volume | 201 |
| DOIs | |
| Publication status | Published - Nov 2022 |
Bibliographical note
Publisher Copyright:© 2022 International Association for Mathematics and Computers in Simulation (IMACS)
Funding
The authors would like to thank anonymous referees for careful consideration of the manuscript and helpful recommendations which improved presentation of the results of the paper.
Keywords
- Delayed financial model
- Hopf bifurcation
- Stability analysis
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