Report
Chaotic dynamics and bifurcation in a macro model
Abstract: The qualitative dynamics of a discrete time version of a deterministic, continuous time, nonlinear macro model formulated by Haavelmo are fully characterized. Recently developed methods of symbolic dynamics and ergodic theory are shown to provide a simple, effective means of analyzing the behavior of the resulting one-parameter family of first-order, deterministic, nonlinear difference equations. A complex periodic and random ?aperiodic? orbit structure dependent on a key structural parameter is present, which contrasts with the total absence of such complexity in Haavelmo?s continuous time version. Several implications for dynamic economic modelling are discussed.
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File(s): File format is application/pdf http://www.minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=336
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Bibliographic Information
Provider: Federal Reserve Bank of Minneapolis
Part of Series: Staff Report
Publication Date: 1980
Number: 55