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Just a question to satisfy my Mathematical itch, but is there anything in Economics that uses Chaos Theory from Math?

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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. $\endgroup$ – user4973 Jun 23 '15 at 16:06
  • $\begingroup$ Both are heavy on math, especially dynamic systems with econ applications. It's theory, but not metrics though. In Hommes, however, we find empirical validation. Check out the TOC. $\endgroup$ – clueless Jun 24 '15 at 22:11
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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! $\endgroup$ – user4973 Jun 23 '15 at 15:42
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You might be interested in this meta-styled approach.

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