The ANZIAM Journal

Research Article

Decomposition method for solving a nonlinear business cycle model

Elias Deebaa1, Ghassan Dibeha2, Suheil Khuria3 and Shishen Xiea1

a1 Department of Computer and Mathematical Sciences, University of Houston-Downtown, Houston, Texas 77002, USA; e-mail: deebae@dt.uh.edu and xies@dt.uh.edu.

a2 Department of Economics, Lebanese American University, Byblos, Lebanon; e-mail: gdibeh@lau.edu.lb.

a3 Department of Computer Science, Mathematics and Statistics, AUS, UAE.

Abstract

In this paper we present a Kaleckian-type model of a business cycle based on a nonlinear delay differential equation. A numerical algorithm based on a decomposition scheme is implemented for the approximate solution of the model. The numerical results of the underlying equation show that the business cycle is stable.

(Received November 15 2001)

(Revised February 13 2002)