If you had asked an economist twenty years ago to outline the study of dynamics, he or she would probably have said that there are three main questions: existence—does the system have an equilibrium; uniqueness—does it have only one equilibrium; and stability—do all paths converge to the equilibrium as time goes to infinity? Though more exotic questions were raised by some (Goodwin is an example), existence, uniqueness and stability were certainly the basic issues in dynamics. These were, for example, the main questions raised in the famous series of articles from the 1950’s by Arrow-Block-Hurwicz-Debru, or one might note the contents of Arrow and Hahn’s General Competitive Analysis.
KeywordsLyapunov Function Lorenz System Time Path Economic Dynamics Switching Line
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