Just a question to satisfy my Mathematical itch, but is there anything in Economics that uses Chaos Theory from Math?
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$\begingroup$ Somewhat related economics.stackexchange.com/questions/212/… $\endgroup$– Martin Van der LindenCommented Jun 24, 2015 at 5:56
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3 Answers
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If you're into growth economics the Nonlinear Dynamics in Equilibrium Models (Eds. Stachurski, Venditti, Yano) collection might be an interesting read.
Hommes' book Behavioral Rationality and Heterogeneous Expectations in Complex Economic Systems seems to be nice fit as well.
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$\begingroup$ Do these reads require an immense knowledge of econometric analysis? I'm an undergrad and have taken the introductory course, so I have a decent background. $\endgroup$– user4973Commented Jun 23, 2015 at 16:06
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I once read this paper on overlapping generations with environment that uses chaotic dynamics http://mpra.ub.uni-muenchen.de/13750/1/MPRA_paper_13750.pdf Many models with environmental variables have strange dynamics, because they induce boundary conditions, non linear dynamic rules and initial conditions become very important due to non-renew-ability.
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$\begingroup$ That sounds intense and intriguing. I've been reading some mathematical history books and Henri Poincare came up, along with his three body motion idea that lead to the theories development. Just spurred my interest to see something that has been applied with it in Economics. So, thank you very much! $\endgroup$– user4973Commented Jun 23, 2015 at 15:42
