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Delli Gatti et al.(1994)'s Model

This is a Java simulation. This model presents the dynamic path of the stock of debt (L) and the level of output(Y). The parameters were provided by the authors in the refered article. When you change the value b0, which represents the propensity to invest out of firm's internal finance, you may get:

Steady-state equilibrium: 0,1 < b0 < 0,65
Periodic Cycles: 0,65 <= b0 <= 1,22
Chaotic Dynamic: 1,22 < b0 < 1,33
Divergent Trajectory: b0 >= 1,33

The map below creates the simulated dynamics

where,

You should try to change the value of b0 and observe the previously described behavior:

obs: If the graph doesn't come out press "reload" in your web browser. You must have enabled/instaled the Java Virtual Machine.

Reference:

DELLI GATTI, D.; GALLEGATTI, M.; GARDINI, L. Complex dynamics in a simple macroeconomic model with financing constraints. In: DYMSKI, G.; POLLIN, R. (Ed.). New perspectives in monetary macroeconomics: explorations in the tradition of Hyman P. Minsky. Ann Arbor: The University of Michigan Press, 1994.