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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 …
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. The former allows equilibrium unemployment to arise endogenously while the latter is responsible for equilibrium credit … rationing. This structure is used to investigate a theoretical link between the level of unemployment and the extent of credit …
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