Title: Chaotic dynamics and bifurcation in a macro model
Description: "The qualitative dynamics of a discrete time version of a deterministic, continuous time, nonlinear macro model formulated by Haavelmo are fully characterized.  Recently developed methods of symbolic dynamics and ergodic theory are shown to provide a simple, effective means of analyzing the behavior of the resulting one-parameter family of first-order, deterministic, nonlinear difference equations.  A complex periodic and random "aperiodic" orbit structure dependent on a key structural parameter is present, which contrasts with the total absence of such complexity in Haavelmo's continuous time version.  Several implications for dynamic economic modelling are discussed"--Federal Reserve Bank of Minneapolis web site.
Subjects: Macroeconomics, Econometric models