We analyze a discrete time two-sector economic growth model where the production technologies in the final and human capital sectors are affected by random shocks both directly (via productivity and factor shares) and indirectly (via a pollution externality). We determine the optimal dynamics in the decentralized economy and show how these dynamics can be described in terms of a two-dimensional affine iterated function system with probability. This allows us to identify a suitable parameter configuration capable of generating exactly the classical Barnsley's fern as the attractor of the log-linearized optimal dynamical system.
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Research Article| May 31 2018
Fractal attractors in economic growth models with random pollution externalities
Special Collection: Nonlinear Economic Dynamics
Davide La Torre;
Davide La Torre, Simone Marsiglio, Fabio Privileggi; Fractal attractors in economic growth models with random pollution externalities. Chaos 1 May 2018; 28 (5): 055916. https://doi.org/10.1063/1.5023782
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