Lotka-Volterra revisited: an unified numerical approach for economic growth and fluctuations
Sinclair Guerra | Kamimura, Arlindo
econophysics | non-linear systems | economic growth
This paper offers an alternative approach of a numerical analysis for the economic growth behaviour of a country. It is based on non linear differential equations with variable coefficients, connecting capital accumulation and the gross domestic product. The two basic features, growth and fluctuations are both capable of being reproduced using this approach, as well as its mutual interaction. Classical diminishing returns, productive increasing returns and economic multiequilibrium points can be modelled within this approach. Capital stock depreciation can also be analytically evaluated. This model can be useful to analyse government policies from an aggregated perspective. An 'ex-post' analysis of the method is presented for Brazilian economic serial data.