Revisiting the business cycle model with cubic nonlinear investment function

Puu [38] introduced a symmetric business cycle model with a cubic investment function depending on a parameter, nevertheless the fact that symmetry is not a needed condition for the investment function was highlighted in [40]. In this paper, the model for business cycles proposed by Puu is revisited using a topological entropy approach, in particular, we prove the existence of topological chaos for a wide range of parameter values. Moreover, a non-symmetric cubic investment map generalizing the model introduced by Puu is considered, giving answer to the posed question. (C) 2020 Elsevier Ltd. All rights reserved.