Share This Article:

On the Application of the Laplace Transform in the Study of Phillips-Type Stabilization Policy

Abstract Full-Text HTML XML Download Download as PDF (Size:240KB) PP. 691-696
DOI: 10.4236/tel.2015.56080    2,808 Downloads   3,338 Views   Citations
Author(s)    Leave a comment

ABSTRACT

This paper provides a reformulation of Phillips’s multiplier-accelerator model with stabilization policy in terms of the Laplace transform. Applying the Laplace transform, the differential equations of the economy are transformed into the algebraic ones on a complex variable. The transfer functions of economic variables are defined by these algebraic equations. With this representation, we show the effects of Phillips-type policy on equilibrium level and derive the necessary and sufficient condition for asymptotic stability.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

Kageyama, S. (2015) On the Application of the Laplace Transform in the Study of Phillips-Type Stabilization Policy. Theoretical Economics Letters, 5, 691-696. doi: 10.4236/tel.2015.56080.

References

[1] Phillips, A.W. (1954) Stabilisation Policy in a Closed Economy. The Economic Journal, 64, 290-323. http://dx.doi.org/10.2307/2226835
[2] Hansen, L. and Sargent, T. (2008) Robustness. Princeton University Press, Princeton.
[3] Bromwich, T.I. (1917) Normal Coordinates in Dynamical Systems. Proceedings of the London Mathematical Society, 2, 401-448. http://dx.doi.org/10.1112/plms/s2-15.1.401
[4] Carson, J. (1926) The Heaviside Operational Calculus. Bulletin of the American Mathematical Society, 32, 43-68. http://dx.doi.org/10.1090/S0002-9904-1926-04162-8
[5] Allen, R.G.D. (1966) Mathematical Economics. Macmillan, London.
[6] Allen, R.G.D. (1967) Macroeconomic Theory: A Mathematical Treatment. Macmillan, London.
[7] Kreyszig, E. (2011) Advanced Engineering Mathematics. Wiley.
[8] Bakshi, U.A. and Bakshi, V.U. (2010) Control Systems. Technical Publications.
[9] Gantmacher, F. (1959) The Theory of Matrices. Chelsea, New York.
[10] Samuelson, P.A. (1947) Foundations of Economic Analysis. Harvard University Press, Cambridge.

  
comments powered by Disqus

Copyright © 2019 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.