Chaotic behavior in an economic model

Abstract

The purpose of this work is to study a discrete-time nonlinear business cycle model of the Kaldor-type. The model is an extended Kaldor model and it is described by a two-dimensional dynamical system with income and capital as variables. We check the orbits of the system, their changes related to changes of the system parameters and their basins of attraction in order to understand the dynamic features of the model.