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Chaotic behaviour of continuous dynamical system generated by Euler equation branching and its application in macroeconomic equilibrium model. (English) Zbl 1363.37046

Summary: We focus on the special type of the continuous dynamical system which is generated by Euler equation branching. Euler equation branching is a type of differential inclusion \(\dot x \in \{f(x),g(x)\}\), where \(f,g: X \subset \mathbb {R}^n \rightarrow \mathbb {R}^n\) are continuous and \(f(x)\neq g(x)\) at every point \(x \in X\). It seems this chaotic behaviour is typical for such dynamical system.
In the second part we show an application in a new formulated overall macroeconomic equilibrium model. This new model is based on the fundamental macroeconomic aggregate equilibrium model called the IS-LM model.

MSC:

37N40 Dynamical systems in optimization and economics
91B50 General equilibrium theory
91B55 Economic dynamics
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