Bifurcations in an economic model with fractional degree

Shaowen Shi; Weinian Zhang

doi:10.3934/dcdsb.2020293

Article Contents

2021, Volume 26, Issue 8: 4407-4431. Doi: 10.3934/dcdsb.2020293

This issue Previous Article Modulation approximation for the quantum Euler-Poisson equation Next Article Pullback attractors for a weakly damped wave equation with delays and sup-cubic nonlinearity

Bifurcations in an economic model with fractional degree

Shaowen Shi and
Weinian Zhang^,

Department of Mathematics, Sichuan University, Chengdu, Sichuan 610064, China

^* Corresponding author: Weinian Zhang
^* Corresponding author: Weinian Zhang

Received: March 31, 2020

Revised: June 30, 2020

Early access: October 2020

Published: August 2021

Supported by NSFC grants #11771307, #11831012 and #11821001

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Abstract

A planar ODE system which models the industrialization of a small open economy is considered. Because fractional powers are involved, its interior equilibria are hardly found by solving a transcendental equation and the routine qualitative analysis is not applicable. We qualitatively discuss the transcendental equation, eliminating the transcendental term to polynomialize the expression of extreme value, so that we can compute polynomials to obtain the number of interior equilibria in all cases and complete their qualitative analysis. Orbits near the origin, at which the system cannot be extended differentiably, are investigated by using the GNS method. Then we display all bifurcations of equilibria such as saddle-node bifurcation, transcritical bifurcation and a codimension 2 bifurcation on a one-dimensional center manifold. Furthermore, we prove nonexistence of closed orbits, homoclinic loops and heteroclinic loops, exhibit global orbital structure of the system and analyze the tendency of the industrialization development.

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Mathematics Subject Classification: Primary: 34C05, 34C23, 34C60; Secondary: 91B55.

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Figure 1. Parameter plane and global phase portrait

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Figure 2. Phase portraits of system (1) in a bounded region

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Table 1. Conditions obtained in [1]

cases	$ \epsilon $	$ \tilde{E} $	interior equilibria
(C1)	$ 0<\epsilon<\tilde\epsilon $	$ 0<\tilde{E}<E_2 $	none
(C2)		$ E_2\le\tilde{E}\le E_1 $	unknown
(C3)		$ E_1<\tilde{E}\le E_M $	$ S_3 $ saddle
(C3)		$ E_1<\tilde{E}\le E_M $	$ S_4 $ stable node
(C4)		$ \tilde{E}>E_M $	$ S_3 $ saddle
(C5)	$ \epsilon\ge\tilde\epsilon $	$ 0<\tilde{E}<E_2 $	none
(C6)		$ E_2\le\tilde{E}\le E_M $	unknown
(C7)		$ \tilde{E}>E_M $	$ S_3 $ saddle

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References

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