Employment, Production and Consumption model: Patterns of phase transitions

Authored by H. Lavicka, L. Lin, J. Novotny

Date Published: 2010-04-15

DOI: 10.1016/j.physa.2009.12.046

Sponsors: No sponsors listed

Platforms: Zarja

Model Documentation: Other Narrative Mathematical description

Model Code URLs: Model code not found

Abstract

We have simulated the model of Employment, Production and Consumption (EPC) using Monte Carlo The EPC model is an agent based model that mimics very basic rules of industrial economy From the perspective of physics, the nature of the interactions in the EPC model represents multi-agent interactions where the relations among agents follow the key laws for circulation of capital and money Monte Carlo simulations of the stochastic model reveal phase transition in the model economy. The two phases are the phase with full unemployment and the phase with nearly full employment The economy switches between these two states suddenly as a reaction to a slight variation in the exogenous parameter, thus the system exhibits strong non-linear behavior as a response to the change of the exogenous parameters (C) 2009 Elsevier B V All rights reserved

Tags

Agent based model Phase transition Monte Carlo method EPC