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Computing Economic Chaos

Richard H. Day
University of Southern California - Department of Economics

Oleg V. Pavlov
Worcester Polytechnic Institute (WPI) - Department of Social Science & Policy Studies

Computational Economics. Vol. 23, No. 4, pp. 289-301, 2004

Abstract:
Existence theory in economics is usually in real domains such as the findings of chaotic trajectories in models of economic growth, tatonnement, or overlapping generations models. Computational examples, however, sometimes converge rapidly to cyclic orbits when in theory they should be nonperiodic almost surely. We explain this anomaly as the result of digital approximation and conclude that both theoretical and numerical behavior can still illuminate essential features of the real data.

Keywords: Chaos, computer-generated chaos, computational approximation, tent map

JEL Classifications: C61, C63, C88

Accepted Paper Series

Date posted: September 23, 2005 ; Last revised: September 23, 2005

Suggested Citation

Day, Richard H. and Pavlov, Oleg V., Computing Economic Chaos. Available at SSRN: http://ssrn.com/abstract=806124

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Contact Information

Richard H. Day (Contact Author) University of Southern California - Department of Economics ( email ) Kaprielian Hall 318-A Los Angeles, CA 90089 United States 213-740-2432 (Phone) 213-740-8543 (Fax)
Oleg V. Pavlov Worcester Polytechnic Institute (WPI) - Department of Social Science & Policy Studies ( email ) 100 Institute Road Worcester, MA 01609 United States 508-831-5234 (Phone) 508-831-5892 (Fax) HOME PAGE: http://users.wpi.edu/~opavlov/

Abstract

References (17)

Date posted: September 23, 2005 ; Last revised: September 23, 2005

Suggested Citation

Contact Information

Richard H. Day (Contact Author)

Oleg V. Pavlov