Accession Number : ADA132836
Title : Keynesian Chaos.
Descriptive Note : Technical summary rept.,
Corporate Author : WISCONSIN UNIV-MADISON MATHEMATICS RESEARCH CENTER
Personal Author(s) : Day,Richard H ; Shafer,Wayne
PDF Url : ADA132836
Report Date : Jul 1983
Pagination or Media Count : 46
Abstract : This paper shows how chaotic fluctuations can emerge in a dynamic version of the standard fixprice macroeconomic model. The crucial parameters involved induced investment and its sensitivity to interest rates. We use some ideas from the theory of chaos and from ergodic theory to illustrate the fact that apparently random trajectories need not be rare. The paper concludes with some tantalizing hints at how insights on monetary theory and policy might change when comparative dynamics rather than comparative statics are used and when nonlinearities of the kind illustrated in the paper prevail.
Descriptors : *Economic models, *Macroeconomics, *Variations, Investments, Variables, Trajectories, Ergodic processes, Dynamics, Statics, Forecasting, Nonlinear systems, Money, Stability, Equations
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE