Complex dynamics in recursive economizing models

By the term "complex dynamics" I shall mean (1) system trajectories that evolve through different qualitative modes of behavior such as growth, oscillation, or decay, (2) irregular, unstable (nonperiodic or chaotic) fluctuations and (3) endogenous phase switching, in which the equations governing change in system states switch from time to time according to rules or functions inherent in the system. In this paper we show how complex dynamics arise in a broad class of discrete time economic processes that can be represented by recursive programs.