Local Stability and Bifurcations in Kaldor Model

We analyze a discrete version of a simple Kaldor model. As is typical for Kaldor model we consider an S shaped investment function. This leads to either a one or three equilibria of the model. For simplicity reasons we do not consider an S shape saving function as assumed in the original Kaldor paper. This does not affect any analytical conclusions as for presentation of dynamic properties nonlinear investment function is sufficient. Our aim is to study changes in the model dynamics under varying parameters. We study transition between one and two equilibria setup and also each of the set up separately.