Dynamic Model of Phillips Curve Using the Maple System

conference paper

English

This paper presents the possibilities offered by the Maple software for solution of the economic model through the differential equations. The paper is concerned with formulation of the dynamic model that reflects more precisely the relation between inflation and unemployment which the Phillips curve became the accepted usage. The economic theory is described in the introductory part of the chapter and serves as the basis for formulation of the relations between economic variables being further subject of the research. The originally classic model of relation between the inflation rate and the unemployment rate leading to the Phillips curve was replaced in this paper by a new model reflecting the real economic situation more precisely and respecting even impact of history of the considered factors by applying the so called differential equations with delayed argument. The paper also describes certain basic tools for work with the differential equations in the Maple system. An example of solution of the mathematical modelling of the Phillips curve supported by the Maple system is contained in the final part of the paper.

Phillips curve, Maple, delay differential equation, economic model, inflation, unemployment, dynamic model

NOVOTNÁ, V.

2012

9. 5. 2012

IBIMA publishing

Istambul

978-0-9821489-7-6

Innovation and Sustainable Economic Competitive Advantage From Regional Development to World Economies

1584

1595

12