Network-based macro fluctuations: what about an open economy?

Business fluctuations in an evolving network economy

Business fluctuations and bankruptcy avalanches in an evolving network economy

We analyze the properties of a three-sector network economy characterized by credit relationships connecting downstream and upstream firms (inside credit) and credit relationships connecting firms and banks (outside credit). The network topology changes over time due to an endogenous process of partner selection (the preferred-partner choice rule). The output of simulations shows that a busines...

Business fluctuations in a credit-network economy

We model a network economy with three sectors: downstream firms, upstream firms, and banks. Agents are linked by productive and credit relationships so that the behavior of one agent influences the behavior of the others through network connections. Credit interlinkages among agents are a source of bankruptcy diffusion: in fact, failure of fulfilling debt commitments would lead to bankruptcy ch...

Country Portfolios in Open Economy Macro Models - Dallas Fed

This paper develops a simple approximation method for computing equilibrium portfolios in dynamic general equilibrium open economy macro models. The method is widely applicable, simple to implement, and gives analytical solutions for equilibrium portfolio positions in any combination or types of asset. It can be used in models with any number of assets, whether markets are complete or incomplet...

Artificial Intelligence and Macro-Economy, An Application

There are five sorts of answers This paper describes an Expert-System (E.S.) for automatic econometric modelling. The aim of the system is to build a set of econometric equations on a data base. The specifications of the economic relationships are made explicit in a knowledge-based system in LISP. So the E.S. has two components : the first is an economic problem solving one, the second is a sta...