Title :
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
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;
Conference_Titel :
Nonlinear Dynamics and Synchronization, 2009. INDS '09. 2nd International Workshop on
Conference_Location :
Klagenfurt
Print_ISBN :
978-1-4244-3844-0
DOI :
10.1109/INDS.2009.5228002
