Nonlinearities, Disequilibria and Simulation: Proceedings of the Arne Ryde Symposium on Quantitative Methods in the Stabilization of Macrodynamic Systems Essays in Honour of Björn Thalberg

304 Pages·1992·37.158 MB·English

by  Kumaraswamy Velupillai (eds.)

NONLINEARITIES, DISEQUILIBRIA
AND SIMULATION
Also edited by Kumaraswamy Velupillai
BUSINESS CYCLES: Theories, Evidence and Analysis (with Nieis Thygesen and
Stefano Zambelli)
GROwrH CYCLES AND MULTISECI'ORAL ECONOMICS: The Goodwin
Tradition (with Gianni Ricci)
NONLINEAR AND MULTISECI'ORAL MACRODYNAMlCS
Bjorn Thalberg lecturing in Lund, autumn 1989.
N onlinearities,
Disequilibria and
Simulation
Proceedings of the Arne Ryde Symposium on
Quantitative Methods in the Stabilization of
Macrodynamic Systems
Essays in Honour of Bjorn Thalberg
Edited by
Kumaraswamy Velupillai
Associate Director, Center for
Computable Economics,
Department of Economics
University of California, Los Angeles
M
© Kumaraswamy Velupillai 1992
Softcover reprint of the hardcover 1s t edition 1992
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First published 1992 by
THE MACMILLAN PRESS LTD
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Companies and representatives
throughout the world
ISBN 978-1-349-12229-5 ISBN 978-1-349-12227-1 (eBook)
DOI 10.1007/978-1-349-12227-1
A catalogue record for this book is available
from the British Library.
Contents
In Memoriam Arne Ryde x
Notes on the Contributors xi
1 Introduction 1
Kumaraswamy Velupillai
2 Bjorn Thalberg-Teacher, Mentor and Friend 12
Kumaraswamy Velupillai
3 Reminiscences 20
Poul Nf/Jrregaard-Rasmussen and Richard M. Goodwin
Part I Reconsidering Frischian Issues
4 The Wooden Horse That Wouldn't Rock:
Reconsidering Frisch 27
Stefano Zambelli
Discussion 55
Bj6rn Thalberg
Response 56
Stefano Zambelli
5 Implicit Nonlinearities in the Economic Dynamics of
'Impulse and Propagation' 57
Kumaraswamy Velupillai
Discussion 71
Hdkan J. Holm
6 Reflections on the Frisch-lohansen Tradition in the
Theory of Production 74
Sven Danf/J
Discussion 81
Lars-Gunnar Svensson and Rolf Fare
vii
viii Contents
Part 11 Simulation, Asymmetries and (Optimal)
Policies in Macroeconomic Models
7 A Chaotic Reformulation of Multiplier-Accelerator
Models 87
Richard M. Goodwin
Discussion 101
Bjorn Thalberg and Kumaraswamy Velupillai
8 Is the Norwegian Business Cycle Asymmetric? 107
Michael Bergman and Lars Jonung
Discussion 126
Stefano Zambelli and Rognvaldur Hannesson
Response 132
Michael Bergman and Lars Jonung
9 Stability and Stabilization of Mature Economies 134
John Cornwall
Discussion 154
Helge Brink, Bjorn Hansson and Carl-Louis Sandblom
Response 159
John Cornwall
10 A test of Rational Expectations and the Permanent
Income Hypothesis Using Swedish Data, 1963-87 163
Curt Wells
Discussion 185
Stefano Zambelli and Shu-Heng Chen
Response 193
Curt Wells
Part III Applied Macroeconomics: The Stage and
the Scenarios
11 Growth and Adjustment in Developing Countries:
A Gap Model Approach 199
Lance Taylor
Contents ix
Discussion 214
Richard H. Day and Kumaraswamy Velupillai
12 Unemployment in the OECD Countries 217
Fritz C. Holte
Discussion 235
Giancarlo Gandolfo and Claes-Henric Siven
Response 239
Fritz C. Holte
13 Some Observations on the Debate About Stability
and Openness 244
Tore Thonstad
Discussion 255
Bo Sandelin
Part IV Analytical Frontiers: Past and Future
14 Chaos and Evolution in Economic Processes 261
Richard H. Day
Discussion 276
Ester Boserup
15 Growth, Welfare and Stabilization: Our Analytical
Heritage 279
Bjorn Thalberg
Index of Names 291
Index of Subjects 295
In Memoriam Arne Ryde
Arne Ryde was an exceptionally promising young student on the
doctorate programme at the Department of Economics in Lund. He
died after an automobile accident in 1968 when only 23 years old. In
his memory his parents Valborg and Sven Ryde created the Arne
Ryde Foundation for the advancement of research at the Department
of Economics at the University of Lund. The editor and publishers
wish to thank the Arne Ryde Foundation for its support in the
publication of this volume.
x