Boom and bust in continuous time evolving economic model
General Finance
2009-10-02 v2 Physics and Society
Abstract
We show that a simple model of a spatially resolved evolving economic system, which has a steady state under simultaneous updating, shows stable oscillations in price when updated asynchronously. The oscillations arise from a gradual decline of the mean price due to competition among sellers competing for the same resource. This lowers profitability and hence population but is followed by a sharp rise as speculative sellers invade the large un-inhabited areas. This cycle then begins again.
Keywords
Cite
@article{arxiv.0801.3973,
title = {Boom and bust in continuous time evolving economic model},
author = {Lawrence Mitchell and G. J. Ackland},
journal= {arXiv preprint arXiv:0801.3973},
year = {2009}
}
Comments
7 pages, 9 figures, epjb style. New references. Section on avoiding boom and bust. Fix bibliography