Complex Motion in Business Cycle Models
The models described in the preceding chapters have been analyzed by means of mathematical techniques which belong to the nowadays standard and basic knowledge in the theory of dynamical systems. While the Poincaré-Bendixson theorem, the special features of the van der Pol equation or the Liénard equation etc. have been used for a fairly long time especially in engineering problems, it is the introduction of these concepts into economics which is relatively new. In this sense, it may be appropriate to label the techniques used in Chapter 4 as classical methods.
KeywordsLyapunov Exponent Business Cycle Correlation Dimension Chaotic Motion Catastrophe Theory
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