NONLINEAR DYNAMICS AND ECONOMIC INSTABILITY: THE OPTIMAL MANAGEMENT OF A BIOLOGICAL POPULATION

Assuming a competitive market, conditions are determined for when a steady-state equilibrium does not exist in the optimal dynamic management of a biological population. Irregular and unpredictable behavior (called Â“"chaos"Â”) can arise from fully rational economic decision making. High interest rate, adjustment costs, and an inelastic demand can contribute to market instability.

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Year of publication:	1995
Authors:	Chavas, Jean-Paul ; Holt, Matthew T.
Published in:	Journal of Agricultural and Resource Economics. - Western Agricultural Economics Association - WAEA. - Vol. 20.1995, 02
Publisher:	Western Agricultural Economics Association - WAEA
Subject:	Environmental Economics and Policy

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005064449