Design of the Investors Interaction Model

The short term industrial investment cycles, it will be assumed, come about through dynamic interaction between industrial investors, or between two interrelated components of investment behaviour a) the decision behaviour of managers and entrepreneurs who are making strategic choices about the kind of 

changes in the industrial economy can be formulated as equations of motion of these two components of investment behaviour. The equation of motion for the investors configuration and the equation of motion for the investors propensities, as presented in the next two sections, constitute essential parts in the design of the Schumpeter Clock model being presented. 

---

The analysis starts with the two coupled autonomous non-linear differential equations (5.53, 54) set up in Sect. 5.3.3 as a result of the design of the investors interaction model of Sect. 5.3. 

---