Accession Number : ADA132836

Title :   Keynesian Chaos.

Descriptive Note : Technical summary rept.,


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
      Numerical Mathematics

Distribution Statement : APPROVED FOR PUBLIC RELEASE