Only recently chaos theory has become an operative tool to analyze a variety of phenomena, including macroeconomics. The basic aims of the book “Budget Deficit and Chaotic Economic Growth Models” are: firstly, to discuss the theory of development of science according to Imre Lakatos’ outlook, secondly, to provide the basic characteristics of chaos theory, and thirdly to present nine chaotic macroeconomic models dealing with the budget deficit as the basic generator of the macroeconomic instability. Author develops nine alternative macroeconomic models. These models apply chaos theory to investigate a specific relation between budget deficit and macroeconomic stability. The models share a common structure, i.e., the dynamic model is built in the form of a first order difference equation, which is then expressed in the form of a logistic equation. The parameters of the logistic equation are expressed in terms of the parameters of the model itself. The style is simple, and mathematical steps all fall into their place without difficulty. It easy for the reader to master the difficult concepts dealt with.
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|data pubblicazione: ||Settembre 2011|