Discrete Dynamics in Nature and Society
Volume 5 (2000), Issue 3, Pages 161-177
doi:10.1155/S1026022600000509
Complex dynamics in a simple model of interdependent open economies
Shahriar Yousefi1
, Yuri Maistrenko2
and Svitlana Popovych2
1The Econometric Group, Department of Statistics and Demography, University of Southern Denmark, Main Campus, Odense University, Campusvej 55, Odense M 5230, Denmark
2Institute of Mathematics, National Academy of Sciences of Ukraine, Tereschenkivska St. 3, Kiev 252601, Ukraine
Abstract
Based on a simple two-market model, characterized by a demand link between competitive markets for goods, a system of coupled difference equations is used to represent the interdependent structure of a global economy. Relying on numerical and analytical approaches, Various dynamic properties of the proposed model are explored. Among others, a general specification of the regions of stability of the equilibrium and main periodic cycles, the transition to chaos through torus destruction, chaotic synchronization, and the coexistence of different types of attractors in parameter space are described. Typical bifurcation processes are illustrated.