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An example: A deterministic analysis of nonlinear effects may mislead!

Kendall (1949) describes an effect discovered by Feller in 1939, which showed that deterministic equations give erroneous results in population models.

has the stationary solution

For convenience, set n1 = 1.

In the limiting case of n2 → ∞, α → 0 while αn2 → λ0, the equilibrium value is

The equilibrium distribution is obtained from the detailed-balance condition which yields

where B is the normalizing constant to ensure that the sum of πk from k = n1 to n2 equals one. Now let n2 and α approach their respective limits as above, and n2α approach λ0. Then

This is the result of Feller (1939).

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Source: Aoki M.. Modeling Aggregate Behaviour & Fluctuations in Economics. Cambridge: Cambridge University Press,2002. — 281 p.. 2002

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