Self-sustained oscillation in economics

摘要

The existence of the loops on the curve, which represent productivity of labor as a function of fixed capital per worker at an enterprise, is analyzed. The model interpreting these loops as a phase portrait of limit cycles is proposed. The reasons for the occurence of self-sustained oscillation are discussed, namely: nonequilibrium character of economical processes at the enterprise and existence of the feedback between productivity of labor and fixed capital per worker.The analysis carried out on the basis of the model enables the administration of the enterprise to make arrangements to avoid the stoppage of the increase of labor productivity.