An extended nonlinear Hicks model of the cycle for a semi-open economy: Application to the USA (1960–2008)

Author

Michaelides, P. ; Belegri-Roboli, A. ; Arapis, G.

Author_Institution

Dept. of Appl. Math. & Phys., Nat. Tech. Univ. of Athens, Athens, Greece

fYear

2009

fDate

20-21 July 2009

Firstpage

40

Lastpage

43

Abstract

This paper presents both an extended nonlinear Hicks model of the cycle for a semi-open economy and a method for deriving estimators based on Nonlinear Least Squares as a Numerical Optimization Problem. Hicks thought that fluctuations in investment, caused by nonlinear changes in autonomous investment and the acceleration principle governing induced investment, led to an adjustment process taking place throughout many periods. An empirical application for the US economy (1960-2008), demonstrates the validity of the model and its almost ideal fit to real world data.

Keywords

economic cybernetics; investment; least squares approximations; nonlinear systems; optimisation; acceleration principle; adjustment process; autonomous investment; extended nonlinear Hicks model; induced investment; nonlinear least squares; numerical optimization problem; semiopen economy; Acceleration; Econometrics; Fluctuations; Investments; Least squares approximation; Mathematical model; Mathematics; Physics; Testing; Yttrium; Hicks model; Nonlinear; US economy; dynamics;

fLanguage

English

Publisher

ieee

Conference_Titel

Nonlinear Dynamics and Synchronization, 2009. INDS '09. 2nd International Workshop on

Conference_Location

Klagenfurt

ISSN

1866-7791

Print_ISBN

978-1-4244-3844-0

Type

conf

DOI

10.1109/INDS.2009.5228002

Filename

5228002