Chaotic behavior in a two--dimensional business cycle model

Abstract

We consider a discrete-time economic model which is a particular case of the Kaldor-type business cycle model and it is described by a two-dimensional dynamical system. Under certain conditions the map can be reduced to a skew map whose components, the base and the fiber map, both have entropy. Our proposal is to study and measure the complexity of the system using symbolic dynamics techniques and the topological entropy.