NONLINEAR DYNAMICS AND ECONOMIC INSTABILITY: THE OPTIMAL MANAGEMENT OF A BIOLOGICAL POPULATION
Journal of Agricultural and Resource Economics · Volume 20, Issue 2, December 1995 · Pages 231–246
Abstract
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 “chaos”) can arise from fully rational economic decision making. High interest rate, adjustment costs, and an inelastic demand can contribute to market instability.
Article details
- Issue
- Volume 20, Issue 2
- Published
- December 1995
- Pages
- 231–246
- Full text
- PDF on AgEcon Search