Simultaion of Nikaido's "No Grwoth, No Flutuations"

See Nikaido "Prices, Cycles and Growth"

The applet works best in Netscape

Short help

Variables

k =: Capital per capita

I/K =: Investment over capital

r =: Nominal interest rate

Speed : Internal java time sharing parameter

Time : t counter

Time Change := dt in the simulation

Phi Scale := A parameter controling ths willingness to invest

Savings := Savings rate

Money Supply : Growth rate of money (if I remeber correctly)

Labour Growth : Effective growth rate of labour

Investment spririts : Measure of willingnes to invest

tr(J)^2-4*|J| : Stability condition

Determinant : Stability condistion

Trace : Stability condition

Steady Growth k := k*

Steady Growth (I/K) := (I/K)*

Steady Growth k := k*

(k*,(I/K)*,r*) defines the values that keep k,I/K,r unchanged. A r* less then zero 0 indicates a situation where no Solovian steady growth exist

Buttons

Start : Starts the simulation

Stop : Stops the simulation

Clear Buffer : Clears all displays

Solow Steady Growth : Sets the variables to there steady growth values

Displays

3d Display : Plots the vector k,(I/K),r in 3-d

2d Display : Plots the vector k,(I/K),r in three 2-d graphs with time on the x-axis

Time mode

For faster performance unde the 3d display use 'Dynamic dt' dt will be adjusted to smaller values when any of k,I/K or r changes fast and vice versa

Example

Choose 2d Display and adjust its size

Set Phi Scale to 0.025 (click once on the right arrow)

Click on the Solow Steady Growth Button

Click Start

The simulation start in a Solovian Steady Growth State!

Click Stop

Change Phi Scale to -0.025