Abstract
In the recent literature, it has been demonstrated that optimal capital accumulation may be chaotic; see Boldrin and Montrucchio (1986) and Deneckere and Pelikan (1986).1 This finding indicates, as Scheinkman (1990) discusses, that the deter- ministic equilibrium model of a dynamic economy may explain various complex dynamic behaviors of economic variables, and, in fact, search for such explanations has already begun (see Brock 1986; Scheinkman and LeBaron 1989, for example).
Econometrica 63, 981–1001, 1995
We would like to thank Nobuo Aoki, Michele Boldrin, William Brock, Dick Day, Toru Koda, Andreu Mas-Colell, Lionel McKenzie, Luigi Montrucchio, Jose Scheinkman, and Yoichiro Takahashi for useful conversations and comments and anonymous referees for detailed comments and suggestions.
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Nishimura, K., Yano, M. (2012). Non-linear Dynamics and Chaos in Optimal Growth: An Example. In: Stachurski, J., Venditti, A., Yano, M. (eds) Nonlinear Dynamics in Equilibrium Models. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-22397-6_6
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