Boom and bust in continuous time evolving economic model

Lawrence Mitchell and G. J. Ackland

Papers from arXiv.org

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.

Date: 2008-01, Revised 2009-05
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Citations: View citations in EconPapers (1)

Published in EPJB 70:567-573 (2009)

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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:0801.3973

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