Extended nonlinear feedback model for describing episodes of high inflation

An extension of the nonlinear feedback (NLF) formalism to describe regimes of hyper- and high-inflation in economy is proposed in the present work. In the NLF model the consumer price index (CPI) exhibits a finite time singularity of the type 1/(tc−t)(1−β)/β, with β>0, predicting a blow up of...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: Szybisz, M.A., Szybisz, L.
Formato: JOUR
Materias:
Critical exponents
Economics, econophysics
Interdisciplinary applications of physics
Singularity theory
Social and economic systems
Special functions
Economics
Critical exponent
Econophysicss
Nonlinear feedback
Acceso en línea:http://hdl.handle.net/20.500.12110/paper_03784371_v465_n_p91_Szybisz
Aporte de:
Biblioteca Digital - Facultad de Ciencias Exactas y Naturales (UBA) de Universidad de Buenos Aires
id todo:paper_03784371_v465_n_p91_Szybisz
record_format dspace
spelling todo:paper_03784371_v465_n_p91_Szybisz2023-10-03T15:33:03Z Extended nonlinear feedback model for describing episodes of high inflation Szybisz, M.A. Szybisz, L. Critical exponents Economics, econophysics Interdisciplinary applications of physics Singularity theory Social and economic systems Special functions Economics Critical exponent Econophysicss Singularity theory Social and economic systems Special functions Nonlinear feedback An extension of the nonlinear feedback (NLF) formalism to describe regimes of hyper- and high-inflation in economy is proposed in the present work. In the NLF model the consumer price index (CPI) exhibits a finite time singularity of the type 1/(tc−t)(1−β)/β, with β>0, predicting a blow up of the economy at a critical time tc. However, this model fails in determining tc in the case of weak hyperinflation regimes like, e.g., that occurred in Israel. To overcome this trouble, the NLF model is extended by introducing a parameter γ, which multiplies all terms with past growth rate index (GRI). In this novel approach the solution for CPI is also analytic being proportional to the Gaussian hypergeometric function 2F1(1/β,1/β,1+1/β;z), where z is a function of β, γ, and tc. For z→1 this hypergeometric function diverges leading to a finite time singularity, from which a value of tc can be determined. This singularity is also present in GRI. It is shown that the interplay between parameters β and γ may produce phenomena of multiple equilibria. An analysis of the severe hyperinflation occurred in Hungary proves that the novel model is robust. When this model is used for examining data of Israel a reasonable tc is got. High-inflation regimes in Mexico and Iceland, which exhibit weaker inflations than that of Israel, are also successfully described. © 2016 Elsevier B.V. Fil:Szybisz, L. Universidad de Buenos Aires. Facultad de Ciencias Exactas y Naturales; Argentina. JOUR info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by/2.5/ar http://hdl.handle.net/20.500.12110/paper_03784371_v465_n_p91_Szybisz
institution Universidad de Buenos Aires
institution_str I-28
repository_str R-134
collection Biblioteca Digital - Facultad de Ciencias Exactas y Naturales (UBA)
topic Critical exponents
Economics, econophysics
Interdisciplinary applications of physics
Singularity theory
Social and economic systems
Special functions
Economics
Critical exponent
Econophysicss
Singularity theory
Social and economic systems
Special functions
Nonlinear feedback
spellingShingle Critical exponents
Economics, econophysics
Interdisciplinary applications of physics
Singularity theory
Social and economic systems
Special functions
Economics
Critical exponent
Econophysicss
Singularity theory
Social and economic systems
Special functions
Nonlinear feedback
Szybisz, M.A.
Szybisz, L.
Extended nonlinear feedback model for describing episodes of high inflation
topic_facet Critical exponents
Economics, econophysics
Interdisciplinary applications of physics
Singularity theory
Social and economic systems
Special functions
Economics
Critical exponent
Econophysicss
Singularity theory
Social and economic systems
Special functions
Nonlinear feedback
description An extension of the nonlinear feedback (NLF) formalism to describe regimes of hyper- and high-inflation in economy is proposed in the present work. In the NLF model the consumer price index (CPI) exhibits a finite time singularity of the type 1/(tc−t)(1−β)/β, with β>0, predicting a blow up of the economy at a critical time tc. However, this model fails in determining tc in the case of weak hyperinflation regimes like, e.g., that occurred in Israel. To overcome this trouble, the NLF model is extended by introducing a parameter γ, which multiplies all terms with past growth rate index (GRI). In this novel approach the solution for CPI is also analytic being proportional to the Gaussian hypergeometric function 2F1(1/β,1/β,1+1/β;z), where z is a function of β, γ, and tc. For z→1 this hypergeometric function diverges leading to a finite time singularity, from which a value of tc can be determined. This singularity is also present in GRI. It is shown that the interplay between parameters β and γ may produce phenomena of multiple equilibria. An analysis of the severe hyperinflation occurred in Hungary proves that the novel model is robust. When this model is used for examining data of Israel a reasonable tc is got. High-inflation regimes in Mexico and Iceland, which exhibit weaker inflations than that of Israel, are also successfully described. © 2016 Elsevier B.V.
format JOUR
author Szybisz, M.A.
Szybisz, L.
author_facet Szybisz, M.A.
Szybisz, L.
author_sort Szybisz, M.A.
title Extended nonlinear feedback model for describing episodes of high inflation
title_short Extended nonlinear feedback model for describing episodes of high inflation
title_full Extended nonlinear feedback model for describing episodes of high inflation
title_fullStr Extended nonlinear feedback model for describing episodes of high inflation
title_full_unstemmed Extended nonlinear feedback model for describing episodes of high inflation
title_sort extended nonlinear feedback model for describing episodes of high inflation
url http://hdl.handle.net/20.500.12110/paper_03784371_v465_n_p91_Szybisz
work_keys_str_mv AT szybiszma extendednonlinearfeedbackmodelfordescribingepisodesofhighinflation
AT szybiszl extendednonlinearfeedbackmodelfordescribingepisodesofhighinflation
_version_ 1782030619824357376

Ejemplares similares