Financial fragility, industrial dynamics, and business fluctuations in an agent-based model
Authored by Mauro Gallegati, Domenico Delli Gatti, Corrado Di Guilmi, Gianfranco Giulioni
Date Published: 2007-11
DOI: 10.1017/s136510050706018x
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Abstract
In this paper we present and discuss a simple financial accelerator agent-based model, whose conceptual core is the interaction of heterogeneous firms and the banking system. Its simplicity notwithstanding, the model is able to replicate through simulations a large number of stylized facts concerning the shape and evolution over time of the distribution of firms' sizes, growth rates, profits, and “bad debt”.
Tags
Agent-based model
Business Fluctuations
power law distribution
firms' sizes distribution