ABSTRACT
The general topics for discussion and questions addressed to this group were the following:
Relation of deterministic to stochastic models. Role of foresight is removing positive Lyapunov coefficients (stability, chaos, etc.). Meaning of predictability in deterministic systems. Can there be deterministic models without perfect foresight?
Securities markets: economic theory, martingales, excess volatility, explanation of trading volumes. Does deterministic nonlinear analysis help? Psychological components (overconfidence; non-Bayesian expectation formation).
Business cycles: stochastic (monetary or real) models versus deterministic non-linear; large numbers of variables with leads and lags. Are there significant changes in regime, e.g., two world wars, Great Depression, emergence of business cycles.
