Can tori arise in a two-regional model with fixed exchange rates?

Abstract

A two-regional, five dimensional model describing the development of income, capital stock and money stock, which was introduced by T. Asada in [1], is analysed. Sufficient conditions are found for the existence of two pairs of purely imaginary eigenvalues and a fifth negative one for the linear approximation matrix of the model. A theorem on the existence of invariant tori is presented.dynamic model, equilibrium, linear approximatiomatrix, eigenvalues, normal form of differential equations on invariant surface, bifurcation equation, torus