Gomis-Porqueras, Pere; Haro, Alex - In: Journal of Economic Dynamics and Control 27 (2003) 11, pp. 1941-1959
In this paper, we present some techniques used in the dynamical systems literature that let us characterize the stable and unstable manifolds of a given dynamical system. As a result, we can study how an economy behaves as it moves far away from the steady state in an environment where economic...