On Topological Chaos in the Robinson-SolowSrinivasan Model

In this paper, we offer an instance of (topologically) chaotic optimal behavior in a two-sector model with irreversible investment, originally formulated by Robinson, Solow and Srinivasan. Our result follows from the theory of turbulence in non-linear dynamical systems, and relies only on the existence of a continuous optimal policy function. The fact that there is a unique optimal program from each initial stock when future utilities are discounted by a factor smaller than the labor-capital ratio may be of independent interest