Frisch’s Propagation-Impulse Model: A Comprehensive Mathematical Analysis

Frisch’s 1933 macroeconomic model for business cycles has been extensively studied. The present study is the first comprehensive mathematical analysis of Frisch’s model. It provides a detailed reconstruction of how the model was built. We demonstrate the workability of Frisch’s PPIP model without ad...

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Bibliographic Details
Published in:Foundations of science 2023-03, Vol.28 (1), p.57-84
Main Authors: Ginoux, Jean-Marc, Jovanovic, Franck
Format: Article
Language:English
Subjects:
Business schools
Economics and Finance
Education
Humanities and Social Sciences
Mathematical Logic and Foundations
Methodology of the Social Sciences
Numerical analysis
Philosophy
Philosophy of Science
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Summary:Frisch’s 1933 macroeconomic model for business cycles has been extensively studied. The present study is the first comprehensive mathematical analysis of Frisch’s model. It provides a detailed reconstruction of how the model was built. We demonstrate the workability of Frisch’s PPIP model without adding hypotheses or changing the value of Frisch’s parameters. We prove that (1) the propagation model oscillates; (2) the PPIP model is mathematically incomplete; (3) the latter could have been calibrated by Frisch; (4) Frisch’s analysis and demonstration are based on Poincaré’s methodology
ISSN:1233-1821
1572-8471
DOI:10.1007/s10699-021-09827-9