CATASTROPHE THEORY AND ITS APPLICATION IN ECONOMICS

oleh: Hossein Abbasi Nejad, Shapour Mohamadi

Format: Article
Diterbitkan: Allameh Tabataba'i University Press 2002-09-01

Deskripsi

Sudden jumps, qualitative changes and discontinuities are not rare in social and economic phenomena. Catastrophe theory is a proper approach to modeling of dynamical systems that a company faces with sudden jump. Catastrophe theory can be applied in areas such as nonlinear growth models, technical changes, institutional changes, Philips curve, stock market, consumers' behavior and monopolistic behavior. This paper tends to clarify the theory and provide a general guideline to application of it in specific subjects.