The proposal describes an investigation of magnetospheric dynamics using various activity indices and sophisticated non-linear analysis methods. The proposed research has three goals: 1. to examine the size and frequency of active magnetospheric periods and to determine the degree of non-linearity of the magnetospheric response to the solar wind drivers, 2. to investigate the stability of the solar wind - magnetosphere - ionosphere system, and 3. to determine predictive functional relationships between input and output variables.