New Economic Era Thinking and Stock Market Bubbles: A Two-Dimensional Piecewise Linear Discontinuous Map Approach
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F25%3A10257830" target="_blank" >RIV/61989100:27510/25:10257830 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.1007/978-3-031-82003-8_9" target="_blank" >http://dx.doi.org/10.1007/978-3-031-82003-8_9</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1007/978-3-031-82003-8_9" target="_blank" >10.1007/978-3-031-82003-8_9</a>
Alternative languages
Result language
angličtina
Original language name
New Economic Era Thinking and Stock Market Bubbles: A Two-Dimensional Piecewise Linear Discontinuous Map Approach
Original language description
Based on a simple chartist-fundamentalist model, we demonstrate that new economic era thinking, i.e., temporarily optimistic views about the state of the economy, may lead to the creation of endogenous stock market bubbles. The dynamics of our stock market model are represented by a two-dimensional piecewise linear discontinuous map. The discontinuity set is quite different from those considered in the recent works on similar maps. Here, we show how to analyze also maps with novel constraints, proving that the main result is still multistability in the parameter regions associated with the stable fundamental fixed point, coexisting with several attracting cycles. However, in the parameter space, the bifurcation structure of the existing periodicity regions is new, and highly dependent on the parameter values. We describe the bifurcations related to a particular family of cycles with rotation number 1/n, n >= 3. We also describe in detail several properties of a saddle 2-cycle (which can never be attracting), playing an important role for the dynamics. Before its homoclinic bifurcation, the stable set of the 2-cycle belongs to the boundary of the set, in the phase plane, related to divergent trajectories. Our results evidence the existence of oscillations around the fundamental fixed point for parameter settings in what is usually considered its stability domain, as well as the existence of chaotic attractors when the fundamental fixed point is unstable.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50200 - Economics and Business
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2025
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Springer Proceedings in Mathematics and Statistics. Volume 485
ISBN
978-3-031-82002-1
ISSN
2194-1009
e-ISSN
2194-1017
Number of pages
30
Pages from-to
173-202
Publisher name
Springer
Place of publication
Cham
Event location
Phitsanulok
Event date
Jul 17, 2023
Type of event by nationality
WRD - Celosvětová akce
UT code for WoS article
001478817400009