The non-robustness of saddle-point dynamics: A methodological perspective

Donald George

doi:10.1007/978-3-030-58131-2_9

The non-robustness of saddle-point dynamics: A methodological perspective

Donald George

School of Economics

Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review

Abstract / Description of output

The property of robustness is defined in connection with macroeconomic models. Models involving saddle-point dynamics are shown not to have this property, raising serious methodological difficulties. Examples from economic growth theory and the theory of inflation are discussed. The proposed solution to these problems is to embrace non-linear dynamic models in macroeconomics and to analyse them without recourse to local linearization.

Original language	English
Title of host publication	Keynesian, Sraffian, Computable and Dynamic Economics
Subtitle of host publication	Theoretical and Simulational (Numerical) Approaches
Editors	Kumaraswamy Velupillai
Publisher	Palgrave Macmillan
Chapter	9
Pages	231-252
Number of pages	22
ISBN (Electronic)	9783030581312
ISBN (Print)	9783030581305
DOIs	https://doi.org/10.1007/978-3-030-58131-2_9
Publication status	E-pub ahead of print - 9 Mar 2021

Keywords / Materials (for Non-textual outputs)

saddle-point
robustness
growth
inflation
rational expectations

Access to Document

10.1007/978-3-030-58131-2_9

Cite this

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The non-robustness of saddle-point dynamics: A methodological perspective. / George, Donald.
Keynesian, Sraffian, Computable and Dynamic Economics : Theoretical and Simulational (Numerical) Approaches. ed. / Kumaraswamy Velupillai. Palgrave Macmillan, 2021. p. 231-252.

Research output: Chapter in Book/Report/Conference proceeding › Chapter (peer-reviewed) › peer-review

TY - CHAP

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T2 - A methodological perspective

AU - George, Donald

PY - 2021/3/9

Y1 - 2021/3/9

N2 - The property of robustness is defined in connection with macroeconomic models. Models involving saddle-point dynamics are shown not to have this property, raising serious methodological difficulties. Examples from economic growth theory and the theory of inflation are discussed. The proposed solution to these problems is to embrace non-linear dynamic models in macroeconomics and to analyse them without recourse to local linearization.

AB - The property of robustness is defined in connection with macroeconomic models. Models involving saddle-point dynamics are shown not to have this property, raising serious methodological difficulties. Examples from economic growth theory and the theory of inflation are discussed. The proposed solution to these problems is to embrace non-linear dynamic models in macroeconomics and to analyse them without recourse to local linearization.

KW - saddle-point

KW - robustness

KW - growth

KW - inflation

KW - rational expectations

U2 - 10.1007/978-3-030-58131-2_9

DO - 10.1007/978-3-030-58131-2_9

M3 - Chapter (peer-reviewed)

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EP - 252

BT - Keynesian, Sraffian, Computable and Dynamic Economics

A2 - Velupillai, Kumaraswamy

PB - Palgrave Macmillan

ER -

The non-robustness of saddle-point dynamics: A methodological perspective

Abstract / Description of output

Keywords / Materials (for Non-textual outputs)

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Cite this