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Stochastic Lotka–Volterra equations: A model of lagged diffusion of technology in an interconnected world

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  • Chakrabarti, Anindya S.

Abstract

We present a model of technological evolution due to interaction between multiple countries and the resultant effects on the corresponding macro variables. The world consists of a set of economies where some countries are leaders and some are followers in the technology ladder. All of them potentially gain from technological breakthroughs. Applying Lotka–Volterra (LV) equations to model evolution of the technology frontier, we show that the way technology diffuses creates repercussions in the partner economies. This process captures the spill-over effects on major macro variables seen in the current highly globalized world due to trickle-down effects of technology.

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  • Chakrabarti, Anindya S., 2016. "Stochastic Lotka–Volterra equations: A model of lagged diffusion of technology in an interconnected world," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 442(C), pages 214-223.
    • Handle: RePEc:eee:phsmap:v:442:y:2016:i:c:p:214-223
    DOI: 10.1016/j.physa.2015.09.030
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