A (reactive) lattice-gas approach to economic cycles

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 be also 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.

The durations of recession and prosperity: does their distribution follow a power or an exponential law?

“…[15] for getting as actually here the observed power law distribution. It is finally fair to mention that such successions of recessions and prosperity periods, sometimes called business cycles, have recently received a renewed deal of attention from analytical and simulation points of view [10][11][12][16][17][18][19][20] beside theoretical work in classical macroeconommic studies [21].…”

Econophysics and sociophysics: Their milestones & challenges

“…A microscopic approach to macroeconomic features has always been a challenge [150] and refs therein. A birth-death lattice gas model for macroeconomic behavior under heterogeneous spatial economic conditions takes into account the influence of an economic environment on the fitness and concentration evolution of the economic entities.…”

Spatial Interactions in Agent-Based Modeling

“…This model is called ACP and may be described in a mean field approximation (there is no spatial structure in such an approximation) [56,57] by introducing the distribution function of companies N (t, f ), which describes the number of companies having a given fitness f at time t. The system is then additionally characterized by the concentration of companies c(t).…”