scientific article; zbMATH DE number 158460
The apparent aim of the author is to produce a mathematically rigorous introduction to nonlinear dynamics and chaos theory for economists and, possibly, for other applied scientists. Therefore, the most recent and deep results of the field are presented in a fairly mathematician-like manner in clear cut definitions and theorems but all the proofs are omitted and replaced by intuitive explanations of the concepts and facts mentioned. An overwhelming part of the text contains practical suggestions about the applications of the results, and an integral part of the book is a software presentation covering most of the methods mentioned. The mathematician-reviewer believes that the aim has been accomplished but the final word in this respect will be said, obviously, by the economist readers of the book. The first part contains the theory. Here one finds an introduction discussing, among other things, the role of chaotic dynamics when considering business cycles and equilibrium and disequilibrium dynamics, and an informal discussion of deterministic versus stochastic view points of chaos. The theory presented treats flows, attractors, stability, Lyapunov's direct method, bifurcation in general and Hopf bifurcation in particular, ergodic theory, spectral analysis, Lyapunov characteristic exponents, fractal dimensions, symbolic dynamics, transitions to chaos, period doubling etc. The presentation is correct and seems to be, at the same time, understandable to non-mathematician applied scientists. The definition of orbital asymptotic stability is missing though the concept is used in the Hopf bifurcation theorem 2.4. Definition 2.12 of asymptotic stability is, clearly, not applicable to non-constant solutions of autonomous systems. Smale's horseshoe, contrary to what is written on p. 147, is not structurally stable and is, actually, the first example showing that structurally stable systems are not dense in dimensions higher than two. On the other hand the short description of fractal dimensions and the treatment of the methods for their determination is excellent. Considerable effort is made to show how qualitative properties can be extracted from experimental data. Part two presents applications to economics. Here one finds enlightening discussions about discrete versus continuous models and the role of delay, methods for detecting chaos, a study of overlapping-generations models, applications to inventory business cycles, etc. The reader who has got as far as p. 282 even without grasping all the theoretical subtleties of the presentation will, probably, accept as realistic the author's conclusion (iii): ``We have obtained rather strong evidence of chaoticity in the DM/\$ daily exchange rate. Part three (the work of G. Gallo) is a manual of the software DMC which implements the methods presented for computers. The book makes a pleasant and useful reading and will, probably, contribute to the spread of the nonlinear dynamics approach in mathematical economics.
- Backward dynamics in economics. The inverse limit approach
- Chaos and nonlinear dynamics in financial and nonfinancial time series: Evidence from Finland
- Capital-labor substitution and competitive nonlinear endogenous business cycles
- Heterogeneous beliefs and routes to chaos in a simple asset pricing model
- Complex dynamics and control of arms race
- Chaos in nonlinear dynamical systems exemplified by an R\& D model
- Periodic, almost periodic and chaotic behaviour in Hicks' nonlinear trade cycle model
- Complex dynamics in a threshold advertising model
- Dynamic complexity in a Keynesian growth-cycle model involving Harrod's instability
- Consistent Lyapunov exponent estimation for one-dimensional dynamical systems
- State space reconstruction parameters in the analysis of chaotic time series - the role of the time window length
- A note on Sarkovskii's theorem
- Endogenous fluctuations in a simple asset pricing model with heterogeneous agents
- Chaotic dynamics in a two-dimensional overlapping generations model.
- Ultimate bound estimation set and chaos synchronization for a financial risk system
- Dynamics of the Shapovalov mid-size firm model
- Study of irregular dynamics in an economic model: attractor localization and Lyapunov exponents
- On the exponential stability of Samuelson model on some classes of times scales
- Dynamical analysis and chaos control in a heterogeneous Kopel duopoly game
- Chaotic business cycles and fiscal policy: An IS-LM model with distributed tax collection lags
- Li-Yorke chaos in models with backward dynamics
- The Goodwin cycle improved with generalized wages: phase portrait, periodic behaviour
- Nonlinear economic dynamics.
- Stochastic volatility in interest rates and nonlinearity in velocity
- Dynamics in a nonlinear Keynesian good market model
- Attractors, bifurcations, and chaos. Nonlinear phenomena in economics
- CHAOTIC DYNAMICS FOR MAPS IN ONE AND TWO DIMENSIONS: A GEOMETRICAL METHOD AND APPLICATIONS TO ECONOMICS
- Measuring and controlling the chaotic motion of profits
- Chaos Theory in Operations Research
- Generalized heat diffusion equations with variable coefficients and their fractalization from the Black-Scholes equation
- Solution to nonlinear MHDS arising from optimal growth problems
- Proving chaos for a system of coupled logistic maps: a topological approach
- Loan benchmark interest rate in banking duopoly model with heterogeneous expectation
- Endogenous lifetime, accidental bequests and economic growth
- Decisions on production and quality
- Chaotic equilibria in models with backward dynamics
- Inverse limit spaces arising from problems in economics
- Complex economic dynamics: Chaotic saddle, crisis and intermittency
- E\&F Chaos: A user friendly software package for nonlinear economic dynamics
This page was built for publication:
Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q4032142)
