The Iterative Nature of a Class of Economic Dynamics

Shilei Wang

Czech Economic Review, 2015, vol. 9, issue 3, 155-168

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.

Keywords: Dynamical system; iterated function system; random utility function; stochastic growth; chaos (search for similar items in EconPapers)
JEL-codes: C61 D99 (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
http://auco.cuni.cz/mag/article/download/id/170/type/attachment (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fau:aucocz:au2015_155

Ordering information: This journal article can be ordered from
http://auco.cuni.cz/

Access Statistics for this article

More articles in Czech Economic Review from Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Lenka Stastna ().