Discrete time dynamics with play operators applied to a DSGE economic model

Luogo: Dipartimento di Matematica, via Sommarive, 14 - Povo (TN) - Sala Seminari "-1"
Ore: 10:00

Relatore:

• Dimitry Rachinshy (University Texas at Dallas)

Abstract:

We consider dynamics of discrete time piecewise linear systems, which can be also viewed as a system with the so-called play operator. This operator is used as a building block for several models of hysteresis phenomena observed in plasticity, dry friction, applications of smart materials, and fatigue/damage estimation.
We will argue that the play operator may also be potentially useful for modeling “boundedly rational” behavior of economic agents leading to path dependence, multiplicity of equilibrium states and stickiness of information/prices.
As a test, we will consider a simple DSGE type economic model with the play operator. Some conditions for global stability will be presented. Then we will discuss various types of dynamics.
For a small prototype model, global dynamics and bifurcations will be described depending on two parameters, including border collision bifurcations and chaos.

NOTA: il seminario sara' preceduto da una breve presentazione dell'organizzazione della didattica e della ricerca al Dept. Mathematics, University Texas at Dallas

Contact person: Augusto Visintin