Stability analysis of asset flow differential equations

Duran A.

APPLIED MATHEMATICS LETTERS, cilt.24, ss.471-477, 2011 (SCI İndekslerine Giren Dergi) identifier identifier

  • Cilt numarası: 24
  • Basım Tarihi: 2011
  • Doi Numarası: 10.1016/j.aml.2010.10.044
  • Sayfa Sayıları: ss.471-477


I study the stability analysis of the solutions for the dynamical system of nonlinear asset flow differential equations (AFDEs) in three versions. I show that the previous two versions are not structurally stable mathematically because there are infinitely many critical points. It is important to reformulate a problem in order to eliminate any hypersensitivity in the mathematical model. I find that there is no critical point in the new version unless the chronic discount over the past finite time interval is zero. (C) 2010 Elsevier Ltd. All rights reserved.