CALCULUS OF ITERATIONS AND LABOR CAPITAL CORE PERIPHERY RELATIVE REDISTRIBUTION DYNAMICS

The objective of this paper is to supply, with the help of the log-lin ear two-stock and two-location relative dynamics model, a complete des cription of the qualitative complementarity and competition (i.e. subs titution) properties of the relative shifts in the shares of labor and capital distributed between a core and its periphery. Complete analys is of the labor-capital core-periphery relative mobility can be achiev ed by the movement of equilibria in the phase space. Crossing of bound aries of the stability domain reveals a plethora of possible labor-cap ital redistribution phenomena from stability, periodicity. Arnold mode -locking tongues and quasi-periodicity, to strange attractors and stra nge containers. The movement of equilibria in phase space reveals the universal properties of the log-linear labor-capital core-periphery re lative dynamics: for each preset combination of qualitative properties in labor-capital relative equilibria. it is possible to choose parame ters of the considered log-linear model which generate the needed even t.