IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v337y2004i1p269-287.html
   My bibliography  Save this article

Model of macroeconomic evolution in stable regionally dependent economic fields

Author

Listed:
  • Ausloos, M
  • Clippe, P
  • Pekalski, A

Abstract

We develop a model for the evolution of economic entities within a geographical type of framework. On a square symmetry lattice made of three (economic) regions, firms, described by a scalar fitness, are allowed to move, adapt, merge or create spin-offs under predetermined rules, in a space- and time-dependent economic environment. We only consider here one timely variation of the “external economic field condition”. For the firm fitness evolution, we take into account a constraint such that the disappearance of a firm modifies the fitness of nearest-neighboring ones, as in Bak–Sneppen population fitness evolution model. The concentration of firms, the averaged fitness, the regional distribution of firms, and fitness for different time moments, the number of collapsed, merged and new firms as a function of time have been recorded and are discussed. Also the asymptotic values of the number of firms present in the three regions together with their average fitness, as well as the number of respective births and collapses in the three regions are examined. It appears that a sort of critical selection pressure exists. A power-law dependence, signature of self-critical organization is seen in the birth and collapse asymptotic values for a high selection pressure only. A lack of self-organization is also seen at region borders.

Suggested Citation

  • Ausloos, M & Clippe, P & Pekalski, A, 2004. "Model of macroeconomic evolution in stable regionally dependent economic fields," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 337(1), pages 269-287.
    • Handle: RePEc:eee:phsmap:v:337:y:2004:i:1:p:269-287
    DOI: 10.1016/j.physa.2004.01.029
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437104000500
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2004.01.029?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Miśkiewicz, J. & Ausloos, M., 2004. "A logistic map approach to economic cycles. (I). The best adapted companies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 336(1), pages 206-214.
    2. Weron, Rafal & Przybyłowicz, Beata, 2000. "Hurst analysis of electricity price dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 283(3), pages 462-468.
    3. Prajit K. Dutta & Roy Radner, 1999. "Profit Maximization and the Market Selection Hypothesis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 66(4), pages 769-798.
    4. Ausloos, Marcel & Clippe, Paulette & Pȩkalski, Andrzej, 2003. "Simple model for the dynamics of correlations in the evolution of economic entities under varying economic conditions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 324(1), pages 330-337.
    5. Auerswald, Philip & Kauffman, Stuart & Lobo, Jose & Shell, Karl, 2000. "The production recipes approach to modeling technological innovation: An application to learning by doing," Journal of Economic Dynamics and Control, Elsevier, vol. 24(3), pages 389-450, March.
    6. Hirshleifer, Jack, 1977. "Economics from a Biological Viewpoint," Journal of Law and Economics, University of Chicago Press, vol. 20(1), pages 1-52, April.
    7. Jeroen C. J. M. van den Bergh & John M. Gowdy, 2003. "The microfoundations of macroeconomics: an evolutionary perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(1), pages 65-84, January.
    8. Geoffrey M. Hodgson, 2002. "Darwinism in economics: from analogy to ontology," Journal of Evolutionary Economics, Springer, vol. 12(3), pages 259-281.
    9. Kauffman, Stuart & Lobo, Jose & Macready, William G., 2000. "Optimal search on a technology landscape," Journal of Economic Behavior & Organization, Elsevier, vol. 43(2), pages 141-166, October.
    10. Eldredge, Niles, 1997. "Evolution in the marketplace," Structural Change and Economic Dynamics, Elsevier, vol. 8(4), pages 385-398, October.
    11. Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, vol. 58(3), pages 211-211.
    12. Richards, Gordon R., 2000. "Reconciling econophysics with macroeconomic theory," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 282(1), pages 325-335.
    13. Matthias Kelm, 1997. "Schumpeter's theory of economic evolution: a Darwinian interpretation (*)," Journal of Evolutionary Economics, Springer, vol. 7(2), pages 97-130.
    14. Ausloos, M. & Mróz, I. & Pȩkalski, A. & Vandewalle, N., 1998. "Lattice gas model of gradual evolution," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 248(1), pages 155-164.
    15. Aoki, Masanao & Shirai, Yoshimasa, 2000. "A New Look At The Diamond Search Model: Stochastic Cycles And Equilibrium Selection In Search Equilibrium," Macroeconomic Dynamics, Cambridge University Press, vol. 4(4), pages 487-505, December.
    16. Boulding, K E, 1991. "What Is Evolutionary Economics?," Journal of Evolutionary Economics, Springer, vol. 1(1), pages 9-17, January.
    17. Ausloos, Marcel & Clippe, Paulette & Pȩkalski, Andrzej, 2004. "Evolution of economic entities under heterogeneous political/environmental conditions within a Bak–Sneppen-like dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 332(C), pages 394-402.
    18. Masanao Aoki, 2000. "Cluster Size Distribution of Economics Agents of Many Types in Market," UCLA Economics Online Papers 102, UCLA Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ausloos, Marcel & Miśkiewicz, Janusz & Sanglier, Michèle, 2004. "The durations of recession and prosperity: does their distribution follow a power or an exponential law?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 339(3), pages 548-558.
    2. Chorowski, Michał & Kutner, Ryszard, 2021. "Critical phenomena in the market of competing firms induced by state interventionism," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 578(C).
    3. Marcel Ausloos, 2014. "A biased view of a few possible components when reflecting on the present decade financial and economic crisis," Papers 1412.0127, arXiv.org.
    4. Redelico, Francisco O. & Proto, Araceli N. & Ausloos, Marcel, 2008. "Power law for the duration of recession and prosperity in Latin American countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(25), pages 6330-6336.
    5. Marcel Ausloos & Herbert Dawid & Ugo Merlone, 2015. "Spatial Interactions in Agent-Based Modeling," Dynamic Modeling and Econometrics in Economics and Finance, in: Pasquale Commendatore & Saime Kayam & Ingrid Kubin (ed.), Complexity and Geographical Economics, edition 127, pages 353-377, Springer.
    6. Micha{l} Chorowski & Ryszard Kutner, 2020. "Government intervention modeling in microeconomic company market evolution," Papers 2007.06451, arXiv.org.
    7. Marcel Ausloos, 2013. "Econophysics: Comments on a Few Applications, Successes, Methods and Models," IIM Kozhikode Society & Management Review, , vol. 2(2), pages 101-115, July.
    8. Argentiero, Amedeo & Bovi, Maurizio & Cerqueti, Roy, 2016. "Bayesian estimation and entropy for economic dynamic stochastic models: An exploration of overconsumption," Chaos, Solitons & Fractals, Elsevier, vol. 88(C), pages 143-157.
    9. Miśkiewicz, Janusz & Ausloos, M., 2007. "Delayed information flow effect in economy systems. An ACP model study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 382(1), pages 179-186.
    10. Miśkiewicz, Janusz, 2012. "Economy with the time delay of information flow—The stock market case," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(4), pages 1388-1394.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ausloos, Marcel & Clippe, Paulette & Miśkiewicz, Janusz & Pe¸kalski, Andrzej, 2004. "A (reactive) lattice-gas approach to economic cycles," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 1-7.
    2. Spagano, Salvatore, 2021. "Generalized Darwinism: An Auxiliary Hypothesis," MPRA Paper 108829, University Library of Munich, Germany.
    3. Marcel Ausloos & Herbert Dawid & Ugo Merlone, 2015. "Spatial Interactions in Agent-Based Modeling," Dynamic Modeling and Econometrics in Economics and Finance, in: Pasquale Commendatore & Saime Kayam & Ingrid Kubin (ed.), Complexity and Geographical Economics, edition 127, pages 353-377, Springer.
    4. Ausloos, Marcel & Miśkiewicz, Janusz & Sanglier, Michèle, 2004. "The durations of recession and prosperity: does their distribution follow a power or an exponential law?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 339(3), pages 548-558.
    5. Marcel Ausloos, 2014. "A biased view of a few possible components when reflecting on the present decade financial and economic crisis," Papers 1412.0127, arXiv.org.
    6. Hodgson, Geoffrey M., 1997. "Economics and the return to Mecca: The recognition of novelty and emergence," Structural Change and Economic Dynamics, Elsevier, vol. 8(4), pages 399-412, October.
    7. Redelico, Francisco O. & Proto, Araceli N. & Ausloos, Marcel, 2008. "Power law for the duration of recession and prosperity in Latin American countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(25), pages 6330-6336.
    8. Rammel, Christian & van den Bergh, Jeroen C. J. M., 2003. "Evolutionary policies for sustainable development: adaptive flexibility and risk minimising," Ecological Economics, Elsevier, vol. 47(2-3), pages 121-133, December.
    9. Miśkiewicz, Janusz & Ausloos, M., 2007. "Delayed information flow effect in economy systems. An ACP model study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 382(1), pages 179-186.
    10. Geoffrey M. Hodgson, 2003. "The Mystery of the Routine. The Darwinian Destiny of An Evolutionary Theory of Economic Change," Revue économique, Presses de Sciences-Po, vol. 54(2), pages 355-384.
    11. Burmaoglu, Serhat & Sartenaer, Olivier & Porter, Alan, 2019. "Conceptual definition of technology emergence: A long journey from philosophy of science to science policy," Technology in Society, Elsevier, vol. 59(C).
    12. Karén Hovhannissian & Marco Valente, 2004. "Modeling Directed Local Search Strategies on Technology Landscapes: Depth and Breadth," ROCK Working Papers 028, Department of Computer and Management Sciences, University of Trento, Italy, revised 17 Jun 2008.
    13. Jeroen van den Bergh & John Gowdy, 2000. "Evolutionary Theories in Environmental and Resource Economics: Approaches and Applications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 37-57, September.
    14. Enrico Colombatto, 2002. "Towards a quasi-Lamarckian theory of institutional change," ICER Working Papers 26-2002, ICER - International Centre for Economic Research.
    15. Philip Auerswald, 2010. "Entry and Schumpeterian profits," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 553-582, August.
    16. Taalbi, Josef, 2017. "What drives innovation? Evidence from economic history," Research Policy, Elsevier, vol. 46(8), pages 1437-1453.
    17. Frenken, Koen, 2006. "A fitness landscape approach to technological complexity, modularity, and vertical disintegration," Structural Change and Economic Dynamics, Elsevier, vol. 17(3), pages 288-305, September.
    18. Ingela Alger & Jörgen W. Weibull, 2019. "Evolutionary Models of Preference Formation," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 329-354, August.
    19. Clancy, Matthew, 2015. "Combinatorial Innovation and Research Strategies: Theoretical Framework and Empirical Evidence from Two Centuries of Patent Data," Staff General Research Papers Archive 38400, Iowa State University, Department of Economics.
    20. Jeroen C. J. M. van den Bergh & John M. Gowdy, 2003. "The microfoundations of macroeconomics: an evolutionary perspective," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 27(1), pages 65-84, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:337:y:2004:i:1:p:269-287. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.