Nonlinear economic dynamics
The book deals with some nonlinear dynamical and causal models in economics. The first chapter contains an overview of some classical economic models, a discussion of linearity versus nonlinearity, and of connections to concepts such as structural stability, catastrophe theory, and chaos. Chapter 2 summarizes the author's work on spatial market equilibrium models, stressing structural stability rather than optimality. In chapter 3 population dynamics is discussed with a starting point in the classical Hotelling model. Chapter 4, the main core of the book is devoted to the theory of business cycles. The multiplier- accelerator model with a nonlinear investment function of Hicks-Goodwin type is treated. It is shown how nonlinear models yield a very rich structure of solutions in contrast to the original linear ones. In particular quasi-periodic motion and chaotic behaviour is discussed. The book is well written in a clear style. It contains 27 illustrations. The book is of interest to people working in economics. It should also provide interesting reading and many good explicit examples to people involved with dynamical systems and applied mathematics.
scientific article; zbMATH DE number 195208