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Phase Space Reconstruction from Economic Time Series Data: Improving Models of Complex Real-World Dynamic Systems AgEcon
Huffaker, Ray G..
Failure of economic models to anticipate the global financial crisis illustrates the need for modeling to better capture complex real-world dynamics. Conventional models—in which economic variables evolve toward equilibria or fluctuate about equilibria in response to exogenous random shocks—are ill-equipped to portray complex real-world dynamics in which economic variables may cycle aperiodically along low-dimensional ‘strange attractors’. We present a method developed in the physics literature—‘phase space reconstruction’—that reconstructs strange attractors present in real-world dynamical systems using time series data on a single variable. Phase space reconstruction provides pictures of real-world dynamics that can guide model specification
Tipo: Journal Article Palavras-chave: Phase space reconstruction; Time series data; Economic dynamics; Agribusiness; Agricultural and Food Policy; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Production Economics; Risk and Uncertainty.
Ano: 2010 URL: http://purl.umn.edu/97021
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Phase Space Reconstruction and Nonlinear Equilibrium Dynamics in the United States Beef Market AgEcon
McCullough, Michael; Marsh, Thomas L.; Huffaker, Ray G..
This paper investigates dynamic interactions in the US beef market using phase space reconstruction, which has been developed to analyze nonlinear dynamical systems. This approach provides important and unique empirical insights into consumers’ behavior in the beef market. Our results from a phase space reconstruction analysis demonstrate distinct differences between intertemporal short run impacts from food safety outbreaks (e.g., E. Coli) and longer run health effects (e.g., cholesterol). Adjustments due to factors such as cholesterol are permanent changes and do not affect the manner by which people consume, while consumers react to food safety scares by adjusting consumption for a short period of time and then returning to their normal steady state...
Tipo: Conference Paper or Presentation Palavras-chave: Nonlinear time series; Phase space reconstruction; Food safety; Health effects; Livestock Production/Industries; Marketing.
Ano: 2007 URL: http://purl.umn.edu/9830
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