Growing through chaotic intervals

Laura Gardini (laura.gardini@uniurb.it), Iryna Sushko and Ahmad Naimzada

Journal of Economic Theory, 2008, vol. 143, issue 1, 541-557

Abstract: We consider a growth model proposed by Matsuyama [K. Matsuyama, Growing through cycles, Econometrica 67 (2) (1999) 335-347] in which two sources of economic growth are present: the mechanism of capital accumulation (Solow regime) and the process of technical change and innovations (Romer regime). We will shown that no stable cycle can exist, except for a fixed point and a cycle of period two. The Necessary and Sufficient conditions for regular or chaotic regimes are formulated. The bifurcation structure of the two-dimensional parameter plane is completely explained. It is shown how the border-collision bifurcation leads from the stable fixed point to pure chaotic regime (which consists either in 4-cyclical chaotic intervals, 2-cyclical chaotic intervals or in one chaotic interval).

Keywords: Cycles; Chaotic; intervals; Border-collision; bifurcation; Growth; Innovation (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (48)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0022-0531(08)00055-0
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:jetheo:v:143:y:2008:i:1:p:541-557

Access Statistics for this article

Journal of Economic Theory is currently edited by A. Lizzeri and K. Shell

More articles in Journal of Economic Theory from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).