Catastrophe theory, which originated with the work of the French mathematician René Thom in the 1960s, and became very popular due to the efforts of Christopher Zeeman in the 1970s, considers the special case where the long-run stable equilibrium can be identified with the minimum of a smooth, well-defined potential function (Lyapunov function).
The Big Bang Theory | Theory of a Deadman | music theory | probability theory | theory | Theory of relativity | theory of relativity | Social learning theory | Game Theory (band) | Game Theory | Conspiracy theory | Music theory | K-theory | AP Music Theory | Piaget's theory of cognitive development | conspiracy theory | Theory of Relativity | Theory | Terror management theory | Invariant theory | information theory | graph theory | Galois theory | Einstein–Cartan theory | Conspiracy Theory with Jesse Ventura | Chaos theory | Terror Management Theory | representation theory | Recapitulation theory | Probability theory |
The first to develop a mathematical model of this period of financial distress was J. Barkley Rosser, Jr. (Chapter 5, 1991), drawing on catastrophe theory, while a more detailed such model using agent-based modeling and relying on the wealth constraint idea due to Minsky has been done by Gallegati, Palestrini, and Rosser (2011.)