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The Iterative Nature of a Class of Economic Dynamics

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  • Shilei Wang

    (Universita Ca’ Foscari Venezia, Department of Economics, Venice, Italy)

Abstract

This work aims to demonstrate a rather specific “iterative nature” existing in a class of regular economic dynamics by revisiting two typical economic concepts as informative examples, viz., random utility and stochastic growth. We begin with a formal treatment of discrete dynamical system and its popular derivation, iterated function system, so that a solid foundation could be laid for our analysis of economic dynamics. Two economic systems afterwards are constructed to show how random utility function and stochastic growth in a classical economy could be essentially driven by some iterative elements. Besides, our analyses also implicitly show that a quite complex economic dynamics carrying substantial randomness could basically originate in some fairly simple dynamic principles.

Suggested Citation

  • Shilei Wang, 2015. "The Iterative Nature of a Class of Economic Dynamics," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 9(3), pages 155-168, December.
    • Handle: RePEc:fau:aucocz:au2015_155
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    References listed on IDEAS

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    More about this item

    Keywords

    Dynamical system; iterated function system; random utility function; stochastic growth; chaos;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D99 - Microeconomics - - Micro-Based Behavioral Economics - - - Other

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