Discontinuous initial value problems for functional differential-algebraic equations of mixed type
Journal article: We study the well-posedness of initial value problems for nonlinear functional differential-algebraic equations of mixed type. We are interested in solutions to such problems that admit a single jump discontinuity at time zero. We focus specially on the question whether unstable equilibria can be stabilized by appropriately choosing the size of the jump discontinuity. We illustrate our techniques by analytically studying an economic model for the interplay between inflation and interest rates. In particular, we investigate under which circumstances the central bank can prevent runaway inflation by appropriately hiking the interest rate.
Author(s)
Hippolyte d’Albis, Emmanuelle Augeraud-Véron, Hermen Jan Hupkes
Journal
- Journal of Differential Equations
Date of publication
- 2012
Keywords JEL
Keywords
- Functional differential equations
- Advanced and retarded arguments
- Interest rates
- Inflation rates
- Initial value problems
- Indeterminacy
- Impulsive equations
Pages
- 1959-2024
URL of the HAL notice
Version
- 1
Volume
- 253