Nonlinear Economic Dynamics (Lecture Notes in Economics and Mathematical Systems)

The book studies nonlinear economic dynamics. Formation of spatial patterns, population dynamics in space and time, and spatial waves of business cycles are discussed. The main part dwells on business cycle theory, using a multiplier-accelerator model in a spatial setting with interregional trade. The model is capable of producing: frequency locking, quasiperiodic motion, and chaos. The tools of analysis are classical perturbation methods (Poincaré-Lindstedt). Occasionally, methods developed for the analysis of chaotic systems - like symbolic dynamics - and catastrophe theory are used. The new feature is that modern methods of dynamics are applied to classical economic principles.