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Chaos in Lebanese GDP: The Lorenz Attractor Approach

Author

Listed:
  • Jean-François Verne

    (Université Saint-Joseph de Beyrouth, Faculté de Sciences Economiques)

  • Carole Doueiry Verne

    (Université Saint-Joseph de Beyrouth, Faculté de Gestion et de Management)

Abstract

In this paper we will refer to the chaos theory to analyze the evolution of Lebanese GDP growth rate. We use macroeconomic series as GDP, household consumption expenditure and investment over the period of 1970-2017 to estimate the coefficients of the differential equations of the Lorenz system. We found that the evolution of the Lebanese GDP growth looks like a strange attractor generated by chaotic dynamic.

Suggested Citation

  • Jean-François Verne & Carole Doueiry Verne, 2019. "Chaos in Lebanese GDP: The Lorenz Attractor Approach," Economics Bulletin, AccessEcon, vol. 39(3), pages 1958-1967.
    • Handle: RePEc:ebl:ecbull:eb-18-00950
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    File URL: http://www.accessecon.com/Pubs/EB/2019/Volume39/EB-19-V39-I3-P184.pdf
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    References listed on IDEAS

    as
    1. Baumol, William J & Benhabib, Jess, 1989. "Chaos: Significance, Mechanism, and Economic Applications," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 77-105, Winter.
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    Cited by:

    1. Jean-François Verne, 2021. "Relevance of Chaos and Strange Attractors in the Samuelson-Hicks Oscillator," Economic Thought, World Economics Association, vol. 10(1), pages 32-45, July.

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    More about this item

    Keywords

    Chaos; Macroeconomic model; GDP Growth Rate.;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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