Abstract

In this paper, a finance system with delay is considered. By analyzing the corresponding characteristic equations, the local stability of equilibrium is established. The existence of Hopf bifurcations at the equilibrium is also discussed. Furthermore, formulas for determining the direction of Hopf bifurcation and the stability of the bifurcating periodic solutions are derived by applying the normal form method and center manifold theorem. Finally, numerical simulation results are presented to validate the theoretical analysis. Numerical simulation results show that delay can lead a stable system into a chaotic state.