Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5100057 | Journal of Economic Theory | 2017 | 42 Pages |
Abstract
This paper shows that chaotic dynamics and global indeterminacy may characterize the Lucas (1988) endogenous growth model in its local determinacy region of the parameter space. This is achieved by means of the Shilnikov (1965) theorem, which exploits the existence of a family of homoclinic orbits doubly asymptotic to the balanced growth path, when it is a saddle-focus. The economic implications of these results are also discussed.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Giovanni Bella, Paolo Mattana, Beatrice Venturi,