Financial Fragility and Macroeconomic Instability in a Heterogeneous Interacting Agents Framework
نویسنده
چکیده
منابع مشابه
Macroeconomic instability and microeconomic financial fragility: a stock-flow consistent approach with heterogeneous agents∗
This paper introduces heterogeneous microeconomic behavior into a demand-driven stock-flow consistent model, in order to study the joint dynamics of leverage, income distribution and aggregate demand. The distinctive feature is in that the aggregation of heterogeneous agents is not performed numerically as in traditional agent-based models but by means of an innovative analytical methodology, o...
متن کاملFinancial fragility, mean-field interaction and macroeconomic dynamics: a stochastic model
In recent decades, a considerable stream of research, following the complexity approach (Rosser, 2004), has developed a series of models that import concepts and tools from hard sciences to economics. They represent an attempt to identify an alternative framework to the representative agent hypothesis and to its underlying simplified solution to the aggregation problem (Kirman, 1992). Theoretic...
متن کاملReconstructing Aggregate Dynamics in Heterogeneous Agents Models a Markovian Approach1
The restrictive assumptions imposed by the traditional methods of aggregation prevented so far a sound analysis of complex system of feedback between microeconomic variables and macroeconomic outcomes. This issue seems to be crucial in macroeconomic modelling, in particular for the analysis of financial fragility, as conceived in the Keynesian and New Keynesian literature. In the present paper ...
متن کاملAn Agent-Based Decentralized Matching Macroeconomic Model
In this paper we present a basic but flexible macroeconomic framework with heterogeneous agents – households, firms, banks – which interact through a decentralized matching process presenting common features across four markets – goods, labour, credit and deposit. We study the dynamics of the model by means of computer simulation. Some macroeconomic properties emerge such as endogenous business...
متن کاملA new approach to business fluctuations: heterogeneous interacting agents, scaling laws and financial fragility
In this paper we discuss a scaling approach to business fluctuations. Our starting point consists in recognizing that concepts and methods derived from physics have allowed economists to (re)discover a set of stylized facts which have to be satisfactorily accounted for in their models. Standard macroeconomics, based on a reductionist approach centered on the representative agent, is definitely ...
متن کامل