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Dynamical systems arising from infinite time horizon optimization models

We study cycles and chaos in economic models. Autonomous dynamical systems are considered through infinite time horizon optimization models. We first show how endogenous fluctuations arise in a multisector optimal growth model. Secondly, we consider an extension of this model by allowing direct influences of the production activity among agents. This is what economists call external effects. We show how indeterminacy,i.e.,a multiplicity of equilibrium paths from the same initial point appears.