Deterministic Chaos

Abstract

In discrete calendar time, let us consider once more a competitive economy under stationary fundamentals, containing n goods, and let its deterministic temporary equilibrium,¹ when all economic agents choose their best programs with reference to two periods only, “present” and “future”, be expressed, period after period, by

$$e[p(t),p(t + 1);\theta ] = 0(t = 1,2,...),$$

(30.1)

where $\theta \in {\Re ^m}$ is a vector of parameters expressing, for instance, the mech- anism used by agents to forecast future prices.