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Nonlinear And Complex Dynamics In Economics

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Author Info

  • William Barnett

    (Department of Economics, The University of Kansas)

  • Alfredo Medio

    (Department of Economics, The University of Venice)

  • Apostolos Serletis

    (Department of Economics, The University of Calgary)

Abstract

This paper is an up-to-date survey of the state-of-the-art in dynamical systems theory relevant to high levels of dynamical complexity, characterizing chaos and near chaos, as commonly found in the physical sciences. The paper also surveys applications in economics and �finance. This survey does not include bifurcation analyses at lower levels of dynamical complexity, such as Hopf and transcritical bifurcations, which arise closer to the stable region of the parameter space. We discuss the geometric approach (based on the theory of differential/difference equations) to dynamical systems and make the basic notions of complexity, chaos, and other related concepts precise, having in mind their (actual or potential) applications to economically motivated questions. We also introduce specifi�c applications in microeconomics, macroeconomics, and �finance, and discuss the policy relevancy of chaos.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by University of Kansas, Department of Economics in its series WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS with number 201223.

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Length: 82 pages
Date of creation: Sep 2012
Date of revision: Sep 2012
Handle: RePEc:kan:wpaper:201223

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References

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Citations

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Cited by:
  1. William A. Barnett & Yijun He, 1999. "Center Manifold, Stability, and Bifurcations in Continuous Time Macroeconometric Systems," Macroeconomics 9901002, EconWPA.
  2. William A. Barnett & Alfredo Medio & Apostolos Serletis, 1997. "Nonlinear and Complex Dynamics in Economics," Econometrics 9709001, EconWPA.
  3. Nakamura, Emi, 2005. "Inflation forecasting using a neural network," Economics Letters, Elsevier, vol. 86(3), pages 373-378, March.
  4. Gomes, Orlando, 2013. "Information stickiness on general equilibrium and endogenous cycles," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 7(4), pages 1-43.
  5. Vivaldo M. Mendes & Diana A. Mendes, 2006. "Active Interest Rate Rules and the Role of Stabilization Policy R&D Tax Credits," Working Papers Series 1 ercwp0208, ISCTE-IUL, Business Research Unit (BRU-IUL).
  6. repec:pra:mprapa:8898 is not listed on IDEAS
  7. Vivaldo M. Mendes & Diana A. Mendes, 2007. "Controlling Endogenous Cycles in an OLG Economy by the OGY Method," Working Papers Series 1 ercwp0808, ISCTE-IUL, Business Research Unit (BRU-IUL).
  8. Kitty Moloney & Srinivas Raghavendra, 2010. "Quantitative Risk Estimation in the Credit Default Swap Market using Exteme Value Theory," Working Papers 0158, National University of Ireland Galway, Department of Economics, revised 2010.

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