Volume of the steady-state space of financial flows in a monetary stock-flow-consistent model
Authored by Aurelien Hazan
Date Published: 2017
DOI: 10.1016/j.physa.2017.01.050
Sponsors:
No sponsors listed
Platforms:
No platforms listed
Model Documentation:
Other Narrative
Model Code URLs:
Model code not found
Abstract
We show that a steady-state stock-flow consistent macro-economic model
can be represented as a Constraint Satisfaction Problem (CSP). The set
of solutions is a polytope, which volume depends on the constraints
applied and reveals the potential fragility of the economic circuit,
with no need to study the dynamics. Several methods to compute the
volume are compared, inspired by operations research methods and the
analysis of metabolic networks, both exact and approximate. We also
introduce a random transaction matrix, and study the particular case of
linear flows with respect to money stocks. (C) 2017 Elsevier B.V. All
rights reserved.
Tags
Agent-based models
finance
Economics
Physics and society
Monte-carlo
Needs
Size
Constraint satisfaction
Random network
Convex polytope
Production networks
Points