The mathematical theory of chaos is shown to be a logical step in the evolution of economic equilibrium theory. The mathematics and intuition of chaos is developed in some detail, and its use in the economic literature reviewed. / The chaotic, perfect foresight, overlapping generations model of Grandmont (1985) is extended to include a financial sector, and to explore the implications of money as a medium of exchange. Under different conditions, unique stable equilibria, periodic equilibria (cycles), and aperiodic equilbria are shown to exist. Unlike the Grandmont model, which explored money only as a store of value, this model is not dichotomous. Central bank money supply policy is shown to affect the real sector equilibrium, but in unpredictable ways. / The visual inspection of autocorrelations, the estimation of the largest Lyapunov exponent, and the correlation dimension are all explored as empirical tests for chaos in economic series. These tests are applied to 12 quarterly economic series with mixed results. Furthermore, through the examination of model data, the tests are shown to be sensitive to pre-conditioning methods, initial conditions, and additive white noise. / Source: Dissertation Abstracts International, Volume: 50-08, Section: A, page: 2602. / Major Professor: George Macesich. / Thesis (Ph.D.)--The Florida State University, 1989.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_78039 |
| Contributors | Cunningham, Steven Ray., Florida State University |
| Source Sets | Florida State University |
| Language | English |
| Detected Language | English |
| Type | Text |
| Format | 225 p. |
| Rights | On campus use only. |
| Relation | Dissertation Abstracts International |
Page generated in 0.0016 seconds