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Measuring and Controlling the Chaotic Motion of Profits

2009-11Journal article Open access
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dc.contributor.authorJanuário, Cristina
dc.contributor.authorGrácio, Clara
dc.contributor.authorMendes, Diana A.
dc.contributor.authorDuarte, Jorge
dc.date.accessioned2012-03-13T16:59:25Z
dc.date.available2012-03-13T16:59:25Z
dc.date.issued2009-11
dc.description.abstractThe study of economic systems has generated deep interest in exploring the complexity of chaotic motions in economy. Due to important developments in nonlinear dynamics, the last two decades have witnessed strong revival of interest in nonlinear endogenous business chaotic models. The inability to predict the behavior of dynamical systems in the presence of chaos suggests the application of chaos control methods, when we are more interested in obtaining regular behavior. In the present article, we study a specific economic model from the literature. More precisely, a system of three ordinary differential equations gather the variables of profits, reinvestments and financial flow of borrowings in the structure of a firm. Firstly, using results of symbolic dynamics, we characterize the topological entropy and the parameter space ordering of kneading sequences, associated with one-dimensional maps that reproduce significant aspects of the model dynamics. The analysis of the variation of this numerical invariant, in some realistic system parameter region, allows us to quantify and to distinguish different chaotic regimes. Finally, we show that complicated behavior arising from the chaotic firm model can be controlled without changing its original properties and the dynamics can be turned into the desired attracting time periodic motion (a stable steady state or into a regular cycle). The orbit stabilization is illustrated by the application of a feedback control technique initially developed by Romeiras et al. [1992]. This work provides another illustration of how our understanding of economic models can be enhanced by the theoretical and numerical investigation of nonlinear dynamical systems modeled by ordinary differential equations.por
dc.identifier.citationJanuário C, Grácio C, Mendes D A, Duarte J.Measuring and Controlling the Chaotic Motion of Profits.International Journal of Bifurcation and Chaos. 2009; 19 (11): 3593-3604.por
dc.identifier.issn0218-1274
dc.identifier.urihttp://hdl.handle.net/10400.21/1283
dc.language.isoengpor
dc.peerreviewedyespor
dc.publisherWorld Scientific Publ CO PTE LTDpor
dc.relation.ispartofseries11;
dc.subjectMotion of profitspor
dc.subjectChaotic Modelpor
dc.subjectSymbolic Dynamicspor
dc.subjectTopological Entropypor
dc.subjectControl of Chaospor
dc.titleMeasuring and Controlling the Chaotic Motion of Profitspor
dc.typejournal article
dspace.entity.typePublication
oaire.citation.conferencePlaceSingaporepor
oaire.citation.endPage3604por
oaire.citation.issue19por
oaire.citation.startPage3593por
oaire.citation.titleInternational Journal of Bifurcation and Chaospor
person.familyNameJanuário
person.familyNameDuarte
person.givenNameCristina
person.givenNameJorge
person.identifier.ciencia-idBC1D-1E83-E2B2
person.identifier.orcid0000-0002-6978-876X
person.identifier.orcid0000-0003-2641-3199
person.identifier.ridG-7261-2011
person.identifier.scopus-author-id56526791400
person.identifier.scopus-author-id35310049800
rcaap.rightsrestrictedAccesspor
rcaap.typearticlepor
relation.isAuthorOfPublication42a4023b-b4c4-4456-aaba-d97bf8c14d6a
relation.isAuthorOfPublication4dbec82a-caa4-4662-b156-af73687e867f
relation.isAuthorOfPublication.latestForDiscovery42a4023b-b4c4-4456-aaba-d97bf8c14d6a

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