Boom and bust in continuous time evolving economic model

Lawrence Mitchell; G. J. Ackland

doi:10.1140/epjb/e2009-00243-y

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arXiv · 0801.3973

Boom and bust in continuous time evolving economic model

Lawrence Mitchell·G. J. Ackland

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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.

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Lawrence Mitchell, G. J. Ackland. 2009-05-28. Boom and bust in continuous time evolving economic model. https://doi.org/10.1140/epjb/e2009-00243-y

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