Coupled dynamics with an external system and application to international finance
Article Type
Research Article
Publication Title
Physica A: Statistical Mechanics and its Applications
Abstract
The paper develops a generalized model of coupled dynamics for addressing the choice theoretic problems of economics and other behavioural sciences. The model extends the framework of coupled system to include an external sector that generates a richer dynamics. The model is applied to explain foreign capital inflow from the developed to the developing countries. Under certain regularity conditions, the existence of the solutions to the dynamic choice problem is proved and they are then obtained by numerical technique because of the non-linearity of the related functions. Robustness results are achieved via additional simulations by perturbation of the baseline parameter values.
First Page
409
Last Page
432
DOI
10.1016/j.physa.2019.01.012
Publication Date
4-15-2019
Recommended Citation
Basak, Gopal K.; Das, Pranab Kumar; and Rohit, Allena, "Coupled dynamics with an external system and application to international finance" (2019). Journal Articles. 878.
https://digitalcommons.isical.ac.in/journal-articles/878