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Frontiers of Economics in China

ISSN 1673-3444

ISSN 1673-3568(Online)

CN 11-5744/F

Postal Subscription Code 80-978

Front Econ Chin    2013, Vol. 8 Issue (2) : 288-292    https://doi.org/10.3868/s060-002-013-0015-8
research-article |
Entrepreneurship and Unemployment Cycles: A Delay Differential Equation Approach
Jo?o Ricardo Faria()
MPA Program, University of Texas at El Paso, El Paso, TX 79968-0703, USA
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Abstract

This paper is an application of delay differential equations to entrepreneurship and unemployment. It shows that the results of empirical studies can be replicated through a simple DDE. The paper also carries out a comparative study between a solution of a DDE and the observation of cyclic behaviors. The calculated delay (and growth rate) of the entrepreneurship DDE for the US and Spain is 1.25 years (1.25), for Ireland is 1.75 years (0.89), and for the UK is 2 years (0.78). The delay (and growth rate) of the unemployment DDE for the US and Ireland is 1.5 years (1.04), for Spain is 2 years (0.78), and for the UK is 2.5 years (0.62).

Keywords new firms      employment creation      cycles      delay differential equations     
Corresponding Authors: Jo?o Ricardo Faria,Email:rfaria2@utep.edu   
Issue Date: 05 June 2013
 Cite this article:   
Jo?o Ricardo Faria. Entrepreneurship and Unemployment Cycles: A Delay Differential Equation Approach[J]. Front Econ Chin, 2013, 8(2): 288-292.
 URL:  
http://academic.hep.com.cn/fec/EN/10.3868/s060-002-013-0015-8
http://academic.hep.com.cn/fec/EN/Y2013/V8/I2/288
[1] Ronald McKinnon. Hot Money Flows, Cycles in Primary Commodity Prices, and Financial Control in Developing Countries[J]. Front. Econ. China, 2015, 10(2): 201-223.
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