Preference Cycles and Chaos
The models of the previous parts of this book may be distinguished into those that are based on linear relationships among system components, such as the direct proportionality of the birth of fish in a lake modeled in Chapter 1, and those that capture nonlinearities, such as the per-capita grass consumption by sheep modeled in Chapter 25. The models based on linear relationships could have been solved using analytical methods. In contrast, some of the nonlinear relationships discussed in this book have no analytical solutions. To solve for their behavior over time requires numerical solutions, such as the ones that we adopted here.
KeywordsBudget Constraint Demand Curve Timately Chaos Endogenous Preference Modeling Dynamic Economic
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- 1.For a discussion of endogenous preferences, see Rosser, J.B., From catastrophe to chaos: A General Theory of Economic Discontinuities (Dordrecht, the Netherlands: Kluwer Academic Publishers, 1991).Google Scholar