On the dynamic behavior of Schinasi's business cycle model

Kazuyuki Sasakura*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

39 Citations (Scopus)


We investigate thoroughly Schinasi's business cycle model, a disequilibrium IS-LM model augmented by a government budget constraint, in the case of pure money financing. The model has the two- and three-dimensional versions. For the former case, we prove rigorously the existence of limit cycles by the Poincaré-Bendixson theorem and show that three variables of the model, money supply, output and interest rate, correspond to the leading, coincident and lagging indicators of the usual business index, respectively. For the latter case, closed orbits are considered by the Hopf bifurcation theorem and imagination. Finally, the results obtained in the two- and three-dimensional cases are compared.

Original languageEnglish
Pages (from-to)423-444
Number of pages22
JournalJournal of Macroeconomics
Issue number3
Publication statusPublished - 1994 Jan 1
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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