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Model of macroeconomic evolution in stable regionally dependent economic fields

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  • 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
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    References listed on IDEAS

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    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.

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