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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
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