In 1926, Vito Volterra presented the Pray-Predator model to evalute the effect of time on the population of species [1].
In mathematics, the Lotka-Volterra equations are a couple of first-order, nonlinear, differential equations, which can be used for describing chaotic systems. Lotka-Volterra equations are typically used for describing the dynamics of biological systems, when two species interact: one as prey and the other as predator.
The model can be used to evalute the economy. The idea of Adam Smith of the “Invisible hand” [2] is completely wrong.
Unfortunately, Adam Smith reasoning has dominated the economy for centuries, maybe.
Here it is shown that some economic crisis [3], as 1929 [4] and 1987 [ 5], may have been origin on the excess of capital.
The reasoning presented here can be used to understand variations of price of commodities, as discussed previously [6].
Thus “bubbles” in economy [7] can be predicted, thus mitigating the nephast effect of possible stock market crisis. The Lotke -Volterra equations [8] can be used for the prediction of such “bubbles”.