Once is greater than 2, the equilibrium becomes unstable. The equilibrium point is surrounded by an unstable limit cycle.
Arrows show the direction of the trajectory as time increases.
Oscillations occur in the vicinity of this equilibrium point when . Inside the basin of attraction it reduces the amount of capital that can be accumulated. The resource cannot be depleted down to the levels reached without the minimum consumption assumption. This decreases the amplitude of the swings, as seen in Figures 11 a and 14 . A stable limit cycle of the minimum consumption model of section 5.