Agent-Based Modelling and Simulation for Macroeconomic Systems

  • Andrea Roventini – Istituto di Economia, Scuola Superiore Sant´anna, Pisa, Italia.

Learning goals

The course provides an overview of agent-based macroeconomics from both theoretical and applied perspectives. After having discussed the limit of standard Dynamic Stochastic General Equilibrium (DSGE) models, the agent-based computational economic approach is presented, stressing its possible applications to economic policy. Different agent-based models are then introduced (i) to stress the role of agent heterogeneity and interactions for the emergence of endogenous growth; (ii) to study how the economy self-organize after business-cycle shocks; (iii) to analyze the joint impact of monetary and macro-prudential policies; (iv) to assess how endogenous growth, catching-up and divergence patterns emerge in an open-economy, multy-country framework. Finally, the family of the Schumpeter meeting Keynes (K+S) models is presented, stressing its capability to jointly account for endogenous growth and fluctuations and macro and micro stylized facts.

Program

– From DSGE models to macroeconomic ABMS.
– Exploring the role of heterogeneity and interactions with “simple” macro ABMs.
– Endogenous growth agent-based models.
– Financial stability in agent-based macroeconomics.
– The Schumpeter meeting Keynes model.
– The labor-augmented Schumpeter meeting Keynes model.
– The DSK: an integrated-assessment agent-based model.

Bibliography

Fagiolo, G. and Roventini, A. (2017), “Macroeconomic Policy in DSGE and Agent-Based Models Redux: New Developments and challenges ahead”, Journal of Artificial Societies and Social Simulation 20(1)

Dosi G. and Roventini A. (2019), “More is Different… and Complex! The Case for Agent-Based Macroeconomics”, Journal of Evolutionary Economics, forthcoming

Haldane A. and Turrell A. (2018), “Drawing on Different Disciplines: Macroeconomic Agent-Based Models”, Journal of Evolutionary Economics

Fagiolo, G. and Dosi, G. (2003), “Exploitation, Exploration and Innovation in a Model of Endogenous Growth with Locally Interacting Agents”, Structural Change and Economic Dynamics, 14:237-273

Fagiolo, G., Giachini, D., and A. Roventini (2017), “Innovation, Finance, and Economic Growth: An Agent-Based Approach”, LEM Working paper 2017/30

Guerini, M. Napoletano, M. and Roventini A. (2017), “No Man Is an Island: The Impact of Heterogeneity and Local Interactions on Macroeconomic Dynamics”, Economic Modelling, 68 pp. 82-95

Popoyan, L., Napoletano, M. and Roventini, A. (2017), “Taming Macroeconomic Instability: Monetary and Macro Prudential Policy Interactions in an Agent-Based Model”, Journal of Economic Behavior & Organization, 134:117-140

Dosi G., Roventini A., and Russo, E. (2019), “Endogenous Growth and Global Divergence in a Multi-Country Agent-Based Model”, Journal of Economic Dynamics & Control, forthcoming

Dosi, G., Fagiolo, G. and Roventini, A. (2010), “Schumpeter Meeting Keynes: A Policy-Friendly Model of Endogenous Growth and Business Cycles”, Journal of Economic Dynamics and Control, 34:1748-1767

Dosi, G., Fagiolo, G., Napoletano, M. and Roventini, A. (2013), “Income Distribution, Credit and Fiscal Policies in an Agent-Based Keynesian Model”, Journal of Economic Dynamics and Control, 37:1598-1625

Dosi, G., Fagiolo, G., Napoletano, M., Roventini, A. and Treibich, T. (2015), “Fiscal and Monetary Policies in Complex Evolving Economies”, Journal of Economic Dynamics and Control, 52:166- 189

Dosi, G., Fagiolo, G., Napoletano, M., Roventini, A. and Treibich, T. (2016), “The Short- and Long-Run Damages of Fiscal Austerity: Keynes beyond Schumpeter”, in Stiglitz J. And Guzman M. (eds.), Contemporary Issues in Macroeconomics, Palgrave Macmillan

Dosi, G., Fagiolo, G., Napoletano, M., Roventini, A. and Treibich, T. (2017), “Micro and Macro Policies in the Keynes+Schumpeter Evolutionary Models”, Journal of Evolutionary Economics, 27:63-90

Dosi, G., Napoletano M., Roventini A., Stiglitz J., and T. Treibich (2017), “Rational Heuristics? Expectations and Behaviors in Evolving Economies with Heterogeneous Interacting Agents”, Scuola Superiore Sant’Anna, Institute of Economics, LEM Working Papers 2017/31

Dosi G., Pereira, M., Roventini A., and Virgillito M. E. (2017), “When more Flexibility Yields more Fragility: the Microfoundations of Keynesian Aggregate Unemployment”, Journal of Economic Dynamics & Control, 81, pp. 162-186

Dosi G., Pereira, M., Roventini A., and Virgillito M. E. (2017), “The effects of labour market reforms upon unemployment and income inequalities: an agent-based model”, Socio-Economic Review, 16, pp. 687-720

Dosi G., Pereira, M., Roventini A., and Virgillito M. E. (2018), “Causes and consequences of hysteresis: aggregate demand, productivity, and employment”, Industrial and Corporate Change, 27, pp. 1015-1044

Dosi G., Pereira, M., Roventini A., and Virgillito M. E. (2018), “What if Supply-Side Policies Are not Enough? The
Perverse Interaction of Flexibility and Austerity”, Journal of Economic Behavior and Organization

Lamperti F., Dosi G., Napoletano M., Roventini A., Sapio A. (2018), “Faraway, so Close: Coupled Climate and Economic Dynamics in an Agent-Based Integrated Assessment Model”, Ecological Economics, 150, pp. 315-339

Lamperti F., Dosi G., Napoletano M., Roventini A., Sapio A. (2018), “And Then He Wasn’t a She: Climate Change and Green Transitions in an Agent-Based Integrated Assessment Model”, Scuola Superiore Sant’Anna, Institute of Economics, LEM Working Papers 2018/14

Previous requirements

Elementary notions of economics can help.

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