Dynamic complexity in a Keynesian growth-cycle model involving Harrod's instability

This paper develops a Keynesian macrodynamic model, where some recent reinterpretations of Harrod's dynamics are embodied. Its main purpose is to prove that Harrod's instability principle may give rise to a chaotic motion (specifically a il'nikov scenario) around two equilibrium points: a steady-state unstable equilibrium, whose value depends on parameters defining the technical-progress dynamics, and a stationary state of zero growth. Furthermore, since it allows for a variable growth rate of labor productivity and assigns a key role to expectations, this model comes closer to modern theories of economic growth and endogenous business cycle.