Nonlinear economic dynamics

by Tönu Puu

This book inquires into the non-linear dynamics in mathe-matical economic modelling. The formation of spatialpatterns, like market areas, trade flows, and settlementstructures are studied. The basic approach is to studythequalitative features of the structurally stable pattern bymeans of the generic theory of differential equations, aswell as their transformations by means of catastrophetheory. The main part dwells on business cycle theory, usinga family of non-linear multiplier accelerator models put inthe spatial setting by inter-regional trade. The models arecapable of producing sustained frequency locked oscillation, quasi-periodicity, and chaos. A mixture of analyticalmethods, like perturbation analysis, and heuristicsimulations are used. The 3rd edition has been thoroughlyrevised and considerably expanded, in particular withreference to the study of chaotic behaviour.

222 pages, Hardcover

First published March 1, 1991