Entrepreneurship and Unemployment Cycles: A Delay Differential Equation Approach

This paper is an application of delay differential equations to entrepreneurship and unemployment. It shows that the results of empirical studies can be replicated through a simple DDE. The paper also carries out a comparative study between a solution of a DDE and the observation of cyclic behaviors...

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Bibliographic Details
Published in:Frontiers of economics in China 2013-01, Vol.8 (2), p.288-292
Main Author: Ricardo Faria, João
Format: Article
Language:English
Subjects:
Business cycles
Comparative analysis
cycles
DDE
delay differential equations
Differential equations
employment creation
Entrepreneurship
new firms
Studies
Unemployment
创业
周期
应用程序
延迟微分方程
爱尔兰
生长速率
西班牙
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Summary:This paper is an application of delay differential equations to entrepreneurship and unemployment. It shows that the results of empirical studies can be replicated through a simple DDE. The paper also carries out a comparative study between a solution of a DDE and the observation of cyclic behaviors. The calculated delay (and growth rate) of the entrepreneurship DDE for the US and Spain is 1.25 years (1.25), for Ireland is 1.75 years (0.89), and for the UK is 2 years (0.78). The delay (and growth rate) of the unemployment DDE for the US and Ireland is 1.5 years (1.04), for Spain is 2 years (0.78), and for the UK is 2.5 years (0.62).
ISSN:1673-3444
1673-3568
DOI:10.3868/s060-002-013-0015-8