doiSerbia

A chaotic economic growth model and the agricultural share of an output

Jablanović Vesna D. (Faculty of Agriculture, Belgrade-Zemun)

The agricultural share of a total output generally declines in the process of economic growth. The major reason for this is that consumer demand for food increases only slightly with rising incomes. However, a small, open economy can overcome this constraint to the growth of agricultural production by expanding its net exports. The basic aim of this paper is to set up a chaotic growth model of the gross domestic product that is capable of generating stable equilibria, cycles, or chaos depending on parameter values.

Keywords: agricultural share of an output, gross domestic product, rate of growth, chaos