Effect of Parameter Change in N-L Phase and the Model's Application in China of SHZ OBNL Model based on Finance TBT and Going Out Strategy

S. Zeng (PRC)

Keywords

Equilibrium solution value, model, non-linear formula, phase diagram

Abstract

Shihong Zeng Developing an Optimal Bank Non performing Loans Dynamic Model (SHZ OBNL Model) [1], The equilibrium solution value of SHZ OBNL Model [1] is a non-linear formula. The aim of the article is solve the equilibrium solution value of SHZ OBNL Model in N L Phase Diagram. The paper studies the influence of bank non-performing loans on social welfare from the point of view of the optimal control theory, and calculates the saddle path and the equilibrium value of saddle point of the bank non-performing loans. Moreover, the track of changes of saddle point’s equilibrium value is also calculated. The paper proves the hypothesis as follows: the equilibrium bank non-performing loans are dependent on micro-mechanism and micro-economy factors under the circumstances of macro-economy factors. Then, the reason for the generation of the non-performing loans in China bank system are explained by the optimal bank non-performing loans dynamic model.

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