The rise and fall of catastrophe theory applications in economics: was the baby thrown out with the bathwater? (English) Zbl 1163.91487
Summary: This paper discusses the mathematical origins of catastrophe theory, the various applications of it in economics, the controversy over its use, and the criticism of it as a fad, with the subsequent general disappearance of its use in economics. It presents a criticism of the criticism of the most famous application and a discussion of its current relevance and available alternatives. It concludes that indeed the baby was largely thrown out with the bathwater, and that catastrophe theory should be openly and properly used again in economics.
MSC:
| 91B62 | Economic growth models |
| 91-03 | History of game theory, economics, and finance |
| 01A65 | Development of contemporary mathematics |
| 58K35 | Catastrophe theory |
| 34C40 | Ordinary differential equations and systems on manifolds |
| 35B41 | Attractors |
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