Delay effect and business cycles

In this paper, we study a mathematical model of macroeconomics known as “demand-supply” or “market model.” The classical version of this model has no cycles. We show that the introduction of a delay may lead to the appearance of periodic solutions, including stable solutions, and find the minimum value of such a delay. Our analysis is based on methods of the theory of dynamical systems with infinite-dimensional spaces of initial conditions. For periodic solutions detected, we obtain asymptotic formulas.