Firms' Finance in an Experimentally Microfounded Agent-Based Macroeconomic Model
Authored by Edgardo Bucciarelli, Marcello Silvestri, Gianfranco Giulioni
Date Published: 2017
DOI: 10.1111/meca.12145
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Repast
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Abstract
The purpose of this work is twofold. First, we highlight the importance
of the finance motive in Keynes and how it has affected the work of
Augusto Graziani and Hyman Minsky. Second, we build an agent-based model
where artificial agents replicate heterogeneous financial behavior
induced from discovery driven economic experiments. The aggregate and
disaggregate outcomes of the model are then investigated to identify the
role of entrepreneurs' financial decisions in facing aggregate negative
events or in generating endogenous business cycles.
Tags
Uncertainty
Risk
Business cycles
investment