The main purpose of this paper is to consider effects caused by time delays on stability of continuous models when the dynamic system is piecewise differentiable. To this end, we construct a continuous version of the discrete Hickisan trade cycle model and introduce continuously distributed time delays. It is demonstrated that time delays stabilize an otherwise unstable system, and a piecewisely-connected limit cycle is generated around an unstable stationary state.keywords: hybrid dynamical system, continuously distributed time lag, piecewisely-connected limit cycle, nonlinear multiplier-acclerator model * The earlier verion of the paper was presented at the conference on Transdisplineary Perspectives on Economic Complexity held on May 17,