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Chaos theory reveals structure in aperiodic, dynamic systems. The number of nonlinear business cycle models use chaos theory to explain complex motion of the economy. The basic aim of this paper is to provide a relatively simple chaotic economic growth model that is capable of generating stable...
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capital investment and incentives of capital stock accumulation rather than R&D-related innovation. Accumulation of energy … on investment in physical capital and R&D simultaneously, and make a transition into the innovation-led BGP along which … consumption, capital investment, and R&D have a balanced share. Also in this innovation-led BGP, consumption, physical capital …
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and investment high. It finds that the low cost of capital has been quantitatively an important factor. Theory predicts … China is to rebalance growth towards relying more on consumption and less on exports and investment, banking sector reforms …
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