MS#68. North-South trade and the dynamics of the environment, 1994
with Graciela Chichilnisky and Ron Record
in: Sustainability: Dynamics and Uncertainty, eds. G. Chichilnisky, G.M.Heal and A. Vercelli,
Kluwer Academic Publishers, The Netherlands, 1998, pp. 77-108.
Subjects: Economics, environment
Written: 10/08/93
Abstract. We develop a discrete dynamical system for economic behavior of a North-South model of international trade. Capital stocks of the North and the South increase endogenously through time, defining an iterated dynamical system on the plane. O ur simulations reveal the response diagram for this dynamic system with one of the coefficients of the model (a variable representing property rights on environmen tal resources) as control parameter. As property rights vary we establish the existe nce of oscillations, period doubling bifurcations, chaotic behavior, and multistability. We discuss the implications for business cycles, and the interaction of economic and environmental variables.
[PDF], 31 pages, 3 MB

Last revised by Ralph Abraham