List of authors > Orlando Giuseppe

Business cycles denote oscillations in economy because of downturns and expansions. The macroeconomic variables under our investigation are income, capital, consumption and investment and their dynamics. There is long-standing debate about chaos and non-linear dynamics in economy and even the usefulness of those concepts have been questioned. Stochastic modelling has proven to be able to well represent reality. However a stochastic behaviour implies that reality is about exogenous randomness, while a chaotic behaviour means that reality is deterministic and non-linearities are endogenous. In this paper we compare a Ornstein-Uhlenbeck stochastic process versus a Kaldor-Kalecki deterministic chaotic model to understand what fits better intrinsic structure of real data.