An Alternative Visualization of Business Cycles in Chaos
FEA Working Paper No. 2009-14
13 Pages Posted: 1 Apr 2010
Date Written: March 29, 2010
This paper suggests the application of multi-dimensional graphs in the study of business cycles in the context of chaos theory. The alternative multidimensional graphic method used is known as the Kite-Cartesian space (Ruiz Estrada, 2006). The Kite-Cartesian space is an alternative analytical tool for observing changes in the behavior of business cycles from a multi-dimensional perspective. We apply the Kite-Cartesian analysis to assess U.S. business cycles from 1940 to 2005 by trimester. The Kite-Cartesian approach provides optical “snapshots“ of the national income make-up at any one point in time, thus revolutionizing existing methods of visualization.
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