Bifurcations and Arnold Tongues of a Multiplier-Accelerator Model

Abstract

Abstract In this paper, we investigate the bifurcations of a multiplier-acceler-ator model with nonlinear investment function in an anti-cyclical fiscal policy rule. Firstly, we give the conditions that the model produces supercritical flip bifurcation and subcritical one respectively. Secondly, we prove that the model undergoes a generalized flip bifurcation and present a parameter region such that the model possesses two 2-periodic orbits. Thirdly, it is proved that the model undergoes supercritical Neimark-Sacker bifurcation and produces an attracting invariant circle surrounding a fixed point. Fourthly, we present the Arnold tongues such that the model has periodic orbits on the invariant circle produced from the Neimark-Sacker bifurcation. Finally, to verify the correctness of our results, we numerically simulate a attracting 2-periodic orbit, an stable invariant circle, an Arnold tongue with rotation number 1/7 and an attracting 7-periodic orbit on the invariant circle.