A necessary and sufficient condition for the existence of chaotic price dynamics in an exchange economy

Author:

Tomohiro Uchiyama

Keyword:

Economics, General Economics, General Economics (econ.GN)

journal:

date:

2023-09-16 16:00:00

Abstract

In this note, we study a standard exchange economy model with Cobb-Douglas type consumers and give a necessary and sufficient condition for the existence of a topological chaos in the Walras-Samuelson (tatonnement) price adjustment process. This is a new application of a recent result characterising the existence of a topological chaos for a unimodal interval map by Deng, Khan, Mitra (2022).

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