Stockman, David R.; Raines, Brian E. - Department of Economics, Lerner College of Business and … - 2008
Some macroeconomic models exhibit a type of global indeterminacy known as Euler equation branching (e.g., the one … paper, we show that in models with Euler equation branching there are multiple equilibria and that the dynamics are chaotic …. In particular, we provide sufficient conditions for a dynamical system on the plane with Euler equation branching to be …