This paper establishes the conditions for existence, uniqueness, and exponentially asymptotically stability of periodic orbits of a dynamical system defined by a set of ordinary differential equations with discontinuous righthand side. Moreover, a formula for the basin of attraction is provided. These results equip economists with a set of tools, which will allow them to generate new analytic results.
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- Economic Equilibrium
- Dynamical Systems
- Exponential Asymptotic Stability