Optimal cyclicity and chaos in the 2-sector RSS model: An anything-goes construction

M. Khan and Adriana Piazza

Journal of Economic Behavior & Organization, 2011, vol. 80, issue 3, 397-417

Abstract: We present a simple and transparent construction that furnishes, for any pre-chosen dynamic, particular instances of the 2-sector version of the Robinson–Solow–Srinivasan model that yield the chosen dynamic, including optimal topologically chaotic programs and those that exhibit cycles of any given period. The construction is expressed in terms of ξ, the marginal rate of transformation of capital from one period to the next with zero consumption, an important summary statistic of the model discovered by Khan and Mitra. Our construction relies on theorems due to Li–Yorke and Sharkovsky, and complements earlier work on chaotic dynamics in the RSS model.

Keywords: 2-Sector RSS model; Optimal program; Continuous policy functions; Trapping square; Li–Yorke theorem; Sharkovsky’s theorem; Entropy; Turbulence; Golden number; Catalan numbers (search for similar items in EconPapers)
JEL-codes: C62 D90 O21 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167268111001090
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:80:y:2011:i:3:p:397-417

DOI: 10.1016/j.jebo.2011.04.004

Access Statistics for this article

Journal of Economic Behavior & Organization is currently edited by Houser, D. and Puzzello, D.

More articles in Journal of Economic Behavior & Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().