A basic New Keynesian DSGE model with dispersed information: An agent-based approach
Authored by Alessandro Gobbi, Jakob Grazzini
Date Published: 2019
DOI: 10.1016/j.jebo.2017.12.015
Sponsors:
European Union
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Mathematical description
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Abstract
The aim of this paper is to bridge macro agent-based models with
mainstream macroeconomic models by agentifying the baseline New
Keynesian DSGE model. The model features multiple, boundedly rational,
optimizing agents and is analyzed through numerical simulations. We
exploit the flexibility of agent-based modeling to explore the effect of
dispersed information on the learning process and on macroeconomic
outcomes. We find that with dispersed information monetary and fiscal
policy acquire the role of public signals. (C) 2017 Elsevier B.V. All
rights reserved.
Tags
Agent-based models
Dynamics
Computational Economics
coordination
Learning
Heterogeneity
Expectations
Monetary-policy
Dsge models
Dispersed
information