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date: 24 March 2019

Abstract and Keywords

Economic consequences of critical transitions or regime shifts of ecological systems are a source of considerable concern. Though the underlying mechanisms are well known, only since the advent of electronic computers the analysis of economic models exhibiting critical transitions can be attacked systematically. In particular, bifurcation theory allows one to present the qualitative effects of parameter changes in a convenient way. This chapter gives an overview of recent economic literature dealing with potential environmental regime shifts with a focus on the lake model.

Keywords: bifurcations, catastrophes, complex systems, environment, regime shifts

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