TYPICAL PROPERTIES OF LARGE RANDOM ECONOMIES WITH LINEAR ACTIVITIES

DOI10.1017/S1365100507060191MaRDI QIDQ5439971zbMATH OpenOpenAlexFDO

Authors Andrea De Martino, Isaac Pérez Castillo, Matteo Marsili

Publication date 30 January 2008

Published in Macroeconomic Dynamics (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/cond-mat/0309533

zbMATH Keywords

general equilibriumheterogeneityreplica methodthermodynamic limit

Mathematics Subject Classification ID

General equilibrium theory (91B50) Special types of economic markets (including Cournot, Bertrand) (91B54)

Abstract: We study the competitive equilibrium of large random economies with linear activities using methods of statistical mechanics. We focus on economies with $C$ commodities, $N$ firms, each running a randomly drawn linear technology, and one consumer. We derive, in the limit $N,Coinfty$ with $n=N/C$ fixed, a complete description of the statistical properties of typical equilibria. We find two regimes, which in the limit of efficient technologies are separated by a phase transition, and argue that endogenous technological change drives the economy close to the critical point.

Recommendations

• Statistical mechanics analysis of the equilibria of linear economies
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Cites work

• A statistical equilibrium theory of markets
• How can statistical mechanics contribute to social science?
• On the distribution of the roots of certain symmetric matrices
• Random economies with many interacting agents
• Rigorous results for the Hopfield model with many patterns
• Statistical mechanics analysis of the equilibria of linear economies
• The generalized Parisi formula

Cited in

(4)

• Statistical mechanics analysis of the equilibria of linear economies
• Statistical mechanics of complex economies
• Typical properties of optimal growth in the von Neumann expanding model for large random economies
• A statistical mechanical view of complex economies under the Green transition

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