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A (reactive) lattice-gas approach to economic cycles

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  • Ausloos, Marcel
  • Clippe, Paulette
  • Miśkiewicz, Janusz
  • Pe¸kalski, Andrzej

Abstract

A microscopic approach to macroeconomic features is intended. A model for macroeconomic behavior under heterogeneous spatial economic conditions is reviewed. A birth–death lattice gas model taking into account the influence of an economic environment on the fitness and concentration evolution of economic entities is numerically and analytically examined. The reaction–diffusion model can also be mapped onto a high-order logistic map. The role of the selection pressure along various dynamics with entity diffusion on a square symmetry lattice has been studied by Monte–Carlo simulation. The model leads to a sort of phase transition for the fitness gap as a function of the selection pressure and to cycles. The control parameter is a (scalar) “business plan”. The business plan(s) allows for spin-offs or merging and enterprise survival evolution law(s), whence bifurcations, cycles and chaotic behavior.

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  • 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.
    • Handle: RePEc:eee:phsmap:v:344:y:2004:i:1:p:1-7
    DOI: 10.1016/j.physa.2004.06.078
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    14. 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.
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    Cited by:

    1. 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.
    2. Stavros Drakopoulos & Ioannis Katselidis, 2015. "From Edgeworth to econophysics: a methodological perspective," Journal of Economic Methodology, Taylor & Francis Journals, vol. 22(1), pages 77-95, March.
    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. 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.
    5. 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.
    6. 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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