Albu, LucianLiviu (2006): Nonlinear models: applications in economics.

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Abstract
The study concentrated on demonstrating how nonlinear modelling can be useful to investigate the behavioural of dynamic economic systems. Using some adequate nonlinear models could be a good way to find more refined solutions to actually unsolved problems or ambiguities in economics. Beginning with a short presentation of the simplest nonlinear models, then we are demonstrating how the dynamics of complex systems, as the economic system is, could be explained on the base of some more advanced nonlinear models and using specific techniques of simulation. We are considering the nonlinear models only as an alternative to the stochastic linear models in economics. The conventional explanations of the behaviour of economic system contradict many times the empirical evidence. We are trying to demonstrate that small modifications in the standard linear form of some economic models make more complex and consequently more realistic the behaviour of system simulated on the base of the new nonlinear models. Finally, few applications of nonlinear models to the study of inflationunemployment relationship, potentially useful for further empirical studies, are presented.
Item Type:  MPRA Paper 

Original Title:  Nonlinear models: applications in economics 
Language:  English 
Keywords:  nonlinear model; continuous time map; strange attractor; fractal dimension; natural unemployment 
Subjects:  E  Macroeconomics and Monetary Economics > E3  Prices, Business Fluctuations, and Cycles > E32  Business Fluctuations ; Cycles E  Macroeconomics and Monetary Economics > E2  Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E27  Forecasting and Simulation: Models and Applications C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C63  Computational Techniques ; Simulation Modeling C  Mathematical and Quantitative Methods > C0  General > C02  Mathematical Methods 
Item ID:  3100 
Depositing User:  Lucian Liviu Albu 
Date Deposited:  05. May 2007 
Last Modified:  11. Feb 2013 17:36 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/3100 