Authors: Georges Sarafopoulos
The paper considers the evolution of institutional reforms in a region during the implementation of a reform, on regional development. In previous work (Sarafopoulos and Ioannidis, 2014) we examined the evolution of the reforms on a region through a difference equation and we demonstrated that the slope of the tax function may change the stability of equilibrium and cause a structure to behave chaotically. In this article we show that by introducing a new parameter we can control the previous instability. For values of the slope which in the previous case created instability resulting a stable equilibrium. But also we prove that the new parameter generates instability and chaos. For some values of this parameter there is a locally stable equilibrium which is the value that maximizes the profit function of the local government. Increasing these values, the equilibrium becomes unstable, through period-doubling bifurcation. The complex dynamics, bifurcations and chaos are displayed by computing numerically Lyapunov numbers and sensitive dependence on initial conditions. Keywords:Regional Development, Institutional Reforms of Local Governments, Difference Equation, Equilibrium, Stability, Chaotic Behavior. JEL Classification: C61, C62, D42
Comments: 9 Pages. Published in The Hellenic Open Business Administration Journal; https://hobajournal.wordpress.com/
[v1] 2018-07-03 23:41:59
Unique-IP document downloads: 11 times
Vixra.org is a pre-print repository rather than a journal. Articles hosted may not yet have been verified by peer-review and should be treated as preliminary. In particular, anything that appears to include financial or legal advice or proposed medical treatments should be treated with due caution. Vixra.org will not be responsible for any consequences of actions that result from any form of use of any documents on this website.
Add your own feedback and questions here:
You are equally welcome to be positive or negative about any paper but please be polite. If you are being critical you must mention at least one specific error, otherwise your comment will be deleted as unhelpful.