Chapter

The von Neumann Model as a Chaotic Attractor

Richard M. Goodwin

in Chaotic Economic Dynamics

Published in print November 1990 | ISBN: 9780198283355
Published online November 2003 | e-ISBN: 9780191596315 | DOI: http://dx.doi.org/10.1093/0198283350.003.0003
 The von Neumann Model as a Chaotic Attractor

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Teases out parallels in the thinking of von Neumann and Marx. Goodwin presents a simplified version of the von Neumann model removing the assumption of infinite labour supply. The resulting non‐linear difference system shows endogenously erratic behaviour with cyclical output growth. In the long run, this system ceases to oscillate and another model is proposed to circumvent this problem. For low parameter values, the model has a fixed point; for moderate values, it has a limit cycle; and for higher values, a chaotic attractor is observed.

Keywords: chaotic attractor; economic growth; endogeneity; labour supply; Marx; non‐linear dynamical model; von Neumann model

Chapter.  2206 words.  Illustrated.

Subjects: Macroeconomics and Monetary Economics

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