Mathematics for Economists

Stability

Example

There is an example of a non-linear system which is attractive but not

locally stable.

x

^1

x 2

=

x 12 (x 2 x 1 )+x 25

(x^21 +x^22 )



1 +(x 12 +x 22 )^2



x 12 (x 2 x 1 )

(x^21 +x^22 )



1 +(x 12 +x 22 )^2