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THE COMPLEX DYNAMICS OF THE SIMPLE RICARDIAN SYSTEM: A NOTE
Author(s) -
Freni Giuseppe
Publication year - 1994
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1994.tb00014.x
Subject(s) - simple (philosophy) , mathematical economics , economics , chaotic , stationary state , representation (politics) , distribution (mathematics) , state (computer science) , statistical physics , econometrics , mathematics , physics , mathematical analysis , quantum mechanics , philosophy , law , management , epistemology , algorithm , politics , political science
In a recent note, Bhaduri and Harris (1987) showed that a discrete‐time dynamic version of the ‘simple’Ricardian system (i.e. Blaug's (1978) popular version of Kaldor's (1955‐6) representation of Ricardian distribution theory, which includes linear agricultural productivity) can be endowed with an unstable stationary state, and that the system can also exhibit “chaotic” orbits (cfr. Collet and Eckmann, 1980), even if these phenomena cannot appear when the adjustment process is continuous. This stationary state does not necessarily have to be unstable. A slightly generalized version of the ‘simple’Ricardian system (we dispense with the linearity assumption) is used in this paper to analyse a number of meaningful special cases in which the stationary state is stable.