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Bifurcation and Sunspots in Continuous Time Optimal Model with Externalities

  • Beatrice VenturiEmail author
  • Alessandro Pirisinu
Conference paper
Part of the Studies in Classification, Data Analysis, and Knowledge Organization book series (STUDIES CLASS)

Abstract

In this chapter, we construct sunspot equilibria in a class of continuous time optimal control models with externalities. The model possesses stochastic characteristics which arise from indeterminate equilibrium and cycles (Hopf cycles) closed to the steady state. The model undergoes to Hopf bifurcations in some parameters set. We construct a stationary sunspot equilibrium near the closed orbit. We show that the stochastic approach suggests a way out from the poverty environments trap in a natural resource optimal model.

Keywords

Multiple steady states Sunspots Oscillating solutions 

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Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  1. 1.Department of Business and EconomicsUniversity of CagliariCagliariItaly

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