On dimension of inverse limits with upper semicontinuous set-valued bonding functions

AbstractWe give results about the dimension of continua, obtained by combining inverse limits of inverse sequences of metric spaces and one-valued bonding maps with inverse limits of inverse sequences of metric spaces and upper semicontinuous set-valued bonding functions, by standard procedure introduced in [I. Banič, Continua with kernels, Houston J. Math. (2006), in press]

Expected Utility in Models with Chaos

In this paper, we provide a framework for calculating expected utility in models with chaotic equilibria and consequently a framework for ranking chaos. Suppose that a dynamic economic model’s equilibria correspond to orbits generated by a chaotic dynamical system f : X ! X where X is a compact metric space and f is continuous. The map f could represent the forward dynamics xt+1 = f(xt) or the backward dynamics xt = f(xt+1). If f represents the forward/backward dynamics, the set of equilibria forms a direct/inverse limit space. We use a natural f-invariant measure on X to induce a measure on the direct/inverse limit space and show that this induced measure is a natural ¾-invariant measure where ¾ is the shift operator. We utilize this framework in the cash-in-advance model of money where f is the backward map to calculate expected utility when equilibria are chaotic.chaos, inverse limits, direct limits, natural invariant measure, cash-in-advance