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Mathematical and historical dynamics of modern economy : an application to the Korean economy

Abstract : It is essential to study nonlinear dynamics in mathematics, and it gives us room to interpret such irregular and unpredictable phenomena as a result of deterministic processes, not mere statistical errors or chances. System dynamics is a methodology as well as a method to implement nonlinear dynamic movements.By these two methods, we capture the crisis in the business cycles and test capital accumulation, and technical changes within the framework of the Macro Stock Management model and apply them to those of the Korean economy. In the latter part of this study, various time series analysis tools are used to estimate the effects of investment on the rates of profit and the effects of wage inequality and consumers’ debt on domestic demand since the global financial crisis of2008. Because the Structural Vector Auto-Regressive (SVAR) model impose on the long run or short run restrictions on the VAR system, it uses to distinguish two variables with similar characteristics, such as the after-tax rate of profit and the rate of profit after payment of interests and dividends excluding taxes (the after-payment rate of profit). Perron (1989) argues that the traditional unit root tests such as the Augmented Dickey-Fuller test are likely to fail to detect the stationarity or non-stationarity of the data if it has structural breaks. Zivot and Andrews (1992) and Lumsdaine and Papell (1997) propose the unit root test of the time series data with a single or two breaks in the time series. The Gregory-Hansen test provides information about a structural break in a cointegration test. The Auto Regressive Distributed Lags (ARDL) model is used to capture long-run relationships between variables.
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Submitted on : Wednesday, June 6, 2018 - 10:39:06 AM
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  • HAL Id : tel-01808854, version 1



Deokmin Kim. Mathematical and historical dynamics of modern economy : an application to the Korean economy. Economics and Finance. Université Panthéon-Sorbonne - Paris I, 2017. English. ⟨NNT : 2017PA01E036⟩. ⟨tel-01808854⟩



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