Mathematics for Economists

(Greg DeLong) #1

Stability


DeÖnition


An equilibrium pointxof a dynamic systemXis called attractive if for
any initial valuex 0 the solutionX(t,x 0 )is convergent toxthat is

tlim!∞X(t,x^0 )=x,^8 x^0.
If it is true only for some neighborhood ofxthenxis called locally
attractive.

DeÖnition


An equilibrium pointxof a dynamic system is (Lyapunov) stable if for
anyε>0 there is aδ>0 such that for anykx 0 xk<δ
kX(t,x 0 )xk<ε.The system is (Lyapunov) asymptotically stable if it
is stable and it is attractive. If it is true only for some neighborhood ofx
thenxis called locally asymptotically stable.
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