2024 - Sustainable Industrial Processing Summit
SIPS 2024 Volume 15. Intl. Symp on Energy, Biochar, Cement, Carbon, Construction Materials, Agroforestry and Environmental
| Editors: | F. Kongoli, S.M. Atnaw, H. Dodds, M. Mauntz, T. Turna, H.W. Kua, M. Giorcelli, J. Antrekowitsch, G. Hanke, O. Adiguzel |
| Publisher: | Flogen Star OUTREACH |
| Publication Year: | 2024 |
| Pages: | 297 pages |
| ISBN: | 978-1-998384-32-7 (CD) |
| ISSN: | 2291-1227 (Metals and Materials Processing in a Clean Environment Series) |
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PRAY-PREDATOR MODEL APPLIED TO EVALUATE THE PRICE OF COMMODITIES: EXTENSION FOR WORLD ECONOMY
Marcos de Campos1;1FEDERAL FLUMINENSE UNIVERSITY, Volta Redonda, Brazil;
Type of Paper: Regular
Id Paper: 516
Topic: 10
Abstract:
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”.