Microeconomic Evolution Model with Technology Diffusion

• Authors: K. Cichy
• Languages of publication: EN

Abstracts

EN

The model discussed in this paper is a modification of the model of macroeconomic evolution in stable regionally dependent fields, developed by Ausloos, Clippe and Pekalski in 2004. Like in the original model, firms exist on a square lattice and can move, merge, adapt and create spin-offs. However, in the new model the firms are described by a scalar parameter identified with their level of technology and by their market share. The probability of survival of a firm depends on the relation between the firm's technology level and the level of the technological frontier. The model incorporates two mechanisms of technology diffusion - inner (resulting from the cooperation between firms and the creation of spin-offs) and outer (interaction with the technological frontier). In this way, we obtain a model of technological progress with technology diffusion. We investigate the properties of this model and perform empirical analysis for a group of OECD countries.

Keywords

EN

89.65.Gh; 88.05.Lg

Discipline

• 88.05.Lg: Economic issues; sustainability; cost trends
• 89.65.Gh: Economics; econophysics, financial markets, business and management(for economic issues regarding production and use of renewable energy, see 88.05.Lg)

• Publisher: Institute of Physics, Polish Academy of Sciences
• Journal: Acta Physica Polonica A
• Year: 2012
• Volume: 121
• Issue: 2B
• Pages: B-16-B-23

Dates

published

2012-02

Contributors

author

K. Cichy

• Chair of Mathematical Economics, Poznań University of Economics, al. Niepodleglosci 10, 60-967 Poznań, Poland
• Faculty of Physics, Adam Mickiewicz University, ul. Umultowska 85, 61-614 Poznań, Poland

References

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Identifiers

DOI

10.12693/APhysPolA.121.B-16