Abstract
We discuss some issues and challenges facing economic modellers when confronted with data generated within a non-linear world. The pitfalls associated with the linearisation of inherently non-linear models are raised and the concept of robustness defined and proposed as a necessary property of scientifically valid models. The existence of chaos in economic time series is discussed and an example, using financial data, presented.
| Original language | English |
|---|---|
| Pages (from-to) | 580-589 |
| Number of pages | 9 |
| Journal | Environmental Modelling and Software |
| Volume | 22 |
| Issue number | 5 |
| Early online date | 20 Mar 2006 |
| DOIs | |
| Publication status | Published - May 2007 |
Keywords / Materials (for Non-textual outputs)
- complexity
- linearisation
- robustness
- structural stability
- chaos
- atractor
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