Transition of chaotic motion to a limit cycle by intervention of economic policy: An empirical analysis in agriculture

Kenshi Sakai, Shunsuke Managi, Nikolay K. Vitanov, Katsuhiko Demura

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

This paper investigates the transition of dynamics observed in an actual real agricultural economic dataset. Lyapunov spectrum analysis is conducted on the data to distinguish deterministic chaos and the limit cycle. Chaotic and periodic oscillation were identified before and after the second oil crisis, respectively. The statitonarity of the time series is investigated using recurrence plots. This shows that government intervention might reduce market instability by removing a chaotic market's long-term unpredictability.

Original languageEnglish
Pages (from-to)253-265
Number of pages13
JournalNonlinear Dynamics, Psychology, and Life Sciences
Volume11
Issue number2
Publication statusPublished - Apr 2007
Externally publishedYes

All Science Journal Classification (ASJC) codes

  • Applied Mathematics

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