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.
Shilnikov chaos in the Lucas model of endogenous growth
BELLA, GIOVANNI;MATTANA, PAOLO;VENTURI, BEATRICE
2017-01-01
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.
File in questo prodotto:
| File | Dimensione | Formato | |
|---|---|---|---|
|
1-s2.0-S0022053117301023-main.pdf
Solo gestori archivio
Tipologia:
versione pre-print
Dimensione
1.4 MB
Formato
Adobe PDF
|
1.4 MB | Adobe PDF | Visualizza/Apri Richiedi una copia |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
