Chen, Yan; Zhang, Yan - In: Macroeconomic Dynamics 15 (2011) 02, pp. 279-291
We show that the introduction of a constant tariff or subsidy levied on foreign energy can lead to a rich set of endogenous fluctuations around the unique steady state, including stable 2-, 4-, 8-, and 15-cycles, quasiperiodic orbits, and chaos. This is demonstrated in a standard neoclassical...