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Economic Models with Exogenous Continuous/Discrete Shocks

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Replication of Chaos in Neural Networks, Economics and Physics

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Abstract

In this section, we investigate the generation of chaos in economic models with equilibria through exogenous shocks. The perturbation is formulated as a pulse function where either values or instants of discontinuity are chaotically behaved. We provide a rigorous proof of the existence of chaos in the perturbed model.

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Notes

  1. 1.

    There exists a third approach, which is somewhere in between the two, where Iterated Function Systems generated by the optimal policy functions for a class of stochastic growth models converge to invariant distributions with support over fractal sets [8].

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Authors and Affiliations

  1. Department of Mathematics, Middle East Technical University, 06800, Ankara, Turkey

    Marat Akhmet

  2. Neuroscience Institute, Georgia State University, 30303, Atlanta, GA, USA

    Mehmet Onur Fen

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  1. Marat Akhmet
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Akhmet, M., Fen, M.O. (2016). Economic Models with Exogenous Continuous/Discrete Shocks. In: Replication of Chaos in Neural Networks, Economics and Physics. Nonlinear Physical Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-47500-3_7

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