Chaotic solutions in infinite-time horizon linear programming and economic dynamics
In Nishimura and Yano (1996), we demonstrate that chaos may emerge as a solution to a dynamic linear programming (LP) problem. That result is closely related to a result of Nishimura and Yano (1995), which establishes the possibility of chaotic optimal accumulation in a two-sector model of optimal capital accumulation. This study intends to survey those results and explain the basic relationship between them.
KeywordsDiscount Factor Linear Programming Problem Chaotic Solution Linear Utility Function Labor Endowment
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