Towards Applied Disequilibrium Growth Theory: III Basic Partial Feedback Structures and Stability Issues

In this paper we consider the 18D case model of applied disequilibrium growth whose extensive and intensive form dynamics we derived in earliier work. Here we analyze in particular the basic partial feedback mechanisms whose interaction drives the dynamics of the overall model. We relate these mechanisms with the names of the economists who originally identified them (usually as isolated mechanisms) e.g., Goodwin, Rose, Keynes, Tobin, Dornbusch and Blanchard. A large part of our analysis is devoted to a study of the factors causing these mechanisms to display stabilizing or destabilizing tendencies. We also discuss some nonlinear mechanisms which may 'tame' the explosive tendencies of the economy in situations of local instability.