Dominique, CRene (2015): How Market Economies Come to Live and Grow on the Edge of Chaos.

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Abstract
Summary: In a HayekFriedmanLucas world, market economies are assumed to be natural, stable, and ergodic; hence, government policies are harmful to their efficiency. We develop a nonlinear dissipative dynamic model that shows that market economies instead live on the edge of chaos. We next appeal to the theory of differential equation to show that if they do not usually dissipate the totality of the information produced by their evolution it is due to a faroff selforganized equilibrium brought about by a spontaneous phase change originating in an optimal government policy.
Item Type:  MPRA Paper 

Original Title:  How Market Economies Come to Live and Grow on the Edge of Chaos 
English Title:  How Market Economies Come to Live and Grow on the Edge of Chaos 
Language:  English 
Keywords:  Keywords: Unstable manifolds, Lyapunov Spectrum, information dimension, metric entropy, edge of chaos, selforganized equilibria, endogenous growth. 
Subjects:  C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61  Optimization Techniques ; Programming Models ; Dynamic Analysis C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C62  Existence and Stability Conditions of Equilibrium C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C65  Miscellaneous Mathematical Tools 
Item ID:  65945 
Depositing User:  CRene Dominique 
Date Deposited:  05 Aug 2015 04:20 
Last Modified:  28 Sep 2019 19:58 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/65945 