Szybisz, M.A.; Szybisz, L."Extended nonlinear feedback model for describing episodes of high inflation" (2017) Physica A: Statistical Mechanics and its Applications. 465:91-108
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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.


Documento: Artículo
Título:Extended nonlinear feedback model for describing episodes of high inflation
Autor:Szybisz, M.A.; Szybisz, L.
Filiación:Departamento de Economía, Facultad de Ciencias Económicas, Universidad de Buenos Aires, Av. Córdoba 2122, Buenos Aires, RA 1120, Argentina
Laboratorio TANDAR, Departamento de Física, Comisión Nacional de Energía Atómica, Av. del Libertador 8250, Buenos Aires, RA 1429, Argentina
Departamento de Física, Facultad de Ciencias Exactas y Naturales, Universidad de Buenos Aires, Ciudad Universitaria, Buenos Aires, RA 1428, Argentina
Consejo Nacional de Investigaciones Científicas y Técnicas, Av. Rivadavia 1917, Buenos Aires, RA 1033, Argentina
Palabras clave: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
Página de inicio:91
Página de fin:108
Título revista:Physica A: Statistical Mechanics and its Applications
Título revista abreviado:Phys A Stat Mech Appl


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---------- APA ----------
Szybisz, M.A. & Szybisz, L. (2017) . Extended nonlinear feedback model for describing episodes of high inflation. Physica A: Statistical Mechanics and its Applications, 465, 91-108.
---------- CHICAGO ----------
Szybisz, M.A., Szybisz, L. "Extended nonlinear feedback model for describing episodes of high inflation" . Physica A: Statistical Mechanics and its Applications 465 (2017) : 91-108.
---------- MLA ----------
Szybisz, M.A., Szybisz, L. "Extended nonlinear feedback model for describing episodes of high inflation" . Physica A: Statistical Mechanics and its Applications, vol. 465, 2017, pp. 91-108.
---------- VANCOUVER ----------
Szybisz, M.A., Szybisz, L. Extended nonlinear feedback model for describing episodes of high inflation. Phys A Stat Mech Appl. 2017;465:91-108.