Chaos in business cycles
1991 (English)In: Chaos, Solitons & Fractals, ISSN 0960-0779, Vol. 1, no 5, 457-473 p.Article in journal (Refereed) Published
The business cycle is studied in terms of the mapping
Zt = λZt−1 − (λ+1)Z3t−1 − σYt−1
Yt = Zt−1 + Y−1
where the variables Y, Z denote income and rate of income change respectively, and λ, σ are two structural parameters. The model produces chaotic or periodic output for income differences. For small σ income acts as a slow feed back causing bifurcations between periodic and chaotic behaviour over the cycle. Typically, transitions between prosperity and depression set in with chaos after which there follows a period halving route to order.
Place, publisher, year, edition, pages
1991. Vol. 1, no 5, 457-473 p.
IdentifiersURN: urn:nbn:se:umu:diva-24556DOI: 10.1016/0960-0779(91)90017-4OAI: oai:DiVA.org:umu-24556DiVA: diva2:226689