Chaotic dynamics and bifurcation in a macro model
AbstractThe 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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Bibliographic InfoPaper provided by Federal Reserve Bank of Minneapolis in its series Staff Report with number 55.
Date of creation: 1980
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-03-14 (All new papers)
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