Catastrophe Theory

Discipline: Economics

Catastrophe theory has its roots in the work of French mathematician Jules Henri Poincare (1854-1912).

A mathematical study of the transition from one state of equilibrium to another and the ensuing instability.

The analysis shows how many stable equilibria exist given a choice of control variables but does not show which of them will be in a particular system.

Source:
P T Saunders, An Introduction to Catastrophe Theory (Cambridge, 1980)

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