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Stochastic Implications of Orbital Asymptotic Stability of a Nonlinear Trade Cycle Model

Econometrica 1972 40(1), 69
[The nonlinear Kaldor theory of macroeconomic business cycles is combined with a classical growth mechanism to derive a deterministic model of business cycle phenomena. Sufficient conditions for the existence, uniqueness, and orbital asymptotic stability of a limit cycle are given. It is shown that the model also exhibits stochastic stability when the deterministic variables are randomly disturbed.]