The Iterative Nature of a Class of Economic Dynamics
The Iterative Nature of a Class of Economic Dynamics
Author(s): Shilei WangSubject(s): Economy, Socio-Economic Research
Published by: Univerzita Karlova v Praze - Institut ekonomických studií
Keywords: Dynamical system; iterated function system; random utility function; stochastic growth; chaos;
Summary/Abstract: This work aims to demonstrate a rather specific “iterative nature” existing in a class of regular economic dynamics by revisiting two typical economic concepts as informative examples, viz., random utility and stochastic growth. We begin with a formal treatment of discrete dynamical system and its popular derivation, iterated function system, so that a solid foundation could be laid for our analysis of economic dynamics. Two economic systems afterwards are constructed to show how random utility function and stochastic growth in a classical economy could be essentially driven by some iterative elements. Besides, our analyses also implicitly show that a quite complex economic dynamics carrying substantial randomness could basically originate in some fairly simple dynamic principles.
Journal: Czech Economic Review
- Issue Year: 9/2015
- Issue No: 03
- Page Range: 155-168
- Page Count: 14
- Language: English