Computing Economic Chaos

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

13 Pages Posted: 23 Sep 2005 Last revised: 18 Apr 2018

See all articles by Richard H. Day

Richard H. Day

University of Southern California - Department of Economics

Oleg V. Pavlov

Worcester Polytechnic Institute (WPI) - Department of Social Science & Policy Studies

Date Written: 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, simulations, computational economics

JEL Classification: C61, C63, C88

Suggested Citation

Day, Richard H. and Pavlov, Oleg V., Computing Economic Chaos (2004). Computational Economics. Vol. 23, No. 4, pp. 289-301, 2004, Available at SSRN: https://ssrn.com/abstract=806124

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

HOME PAGE: http://www.olegpavlov.org

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