Plenary Lecture
Kaldor-Kalecki Model: A Note for an Application to Indonesian Economic Cycle
Professor Edi Cahyono
Universitas Halu Oleo
Indonesia
E-mail: edi_cahyono@innov-center.org
Abstract: Business cycle has attracted many researchers. Economy grows and contracts, experiencing periods of prosperity and pain, is an indicator of the cycle. From national point of view, business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. The main economic variables of such cycle are income and capital stock. It was Kaldor who proposed a mathematical approach to explain the periodic changes of income and capital stock. Other related variables are saving and investment. This talk discusses the dynamics of Indonesian economy based on those variables from available data that spanned from 1971 to 2016, and from the modeling point of view. Kaldor-Kalecki model is considered. Some notes on data fitting to put the model into the real data is presented. Understanding the cycle is important for the government, business players and the people to avoid the downturn and to minimize the economic pain.
Brief Biography of the Speaker: He got a Doctor degree in Applied Analysis and Mathematical Physics University of Twente, the Netherlands in 2002. At the same time, he has been a lecturer in the Department of Mathematics, Universitas Halu Oleo, Kendari Indonesia. In 2010 he was promoted to Professor of Industrial and Applied Mathematics. He was a vice president of the Indonesian Mathematical Society. His main research areas are focused on Partial Differential Equations and applications. For the case of diffusion equation, he has applied it for modeling of wood drying in industry. Currently, he is also working on the relation of fundamental solution type with temporal probability density function of stock, currency and index dynamics.