Business Cycle in a Macromodel with Oligopoly and Agents’ Heterogeneity: An Agent-Based Approach
Autor: | Marco Mazzoli, Pietro Terna, Matteo Morini |
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Rok vydání: | 2017 |
Předmět: |
Economics
Process (engineering) Stochastic process Macroeconomics Cycles · Aggregate income distribution · Industrial organization · Macroeconomics Econometrics and Finance (all)2001 Economics Oligopoly Microeconomics Aggregate income distribution Cycles Industrial organization Economics Econometrics and Finance (all)2001 Economics Econometrics and Finance (miscellaneous) Income distribution Econometrics and Finance (miscellaneous) Business cycle General Economics Econometrics and Finance Aggregate demand Budget constraint |
Zdroj: | Italian Economic Journal. 3:389-417 |
ISSN: | 2199-3238 2199-322X |
DOI: | 10.1007/s40797-017-0058-y |
Popis: | This paper introduces a macromodel with oligopoly and entry/exit in a framework where individuals are heterogeneous in their budget constraints, since they can be workers, new entrant entrepreneurs, incumbent entrepreneurs or unemployed and may change their status due to a stochastic process, associated to entry and exit. Agents’ heterogeneity is explicitly modelled in the aggregate demand, that also accounts for the income distribution. Heterogeneity also plays a relevant role in the process of entry/exit in the goods market, which interacts with the labour market and generates macroeconomic fluctuations. As shown in the agent-based numerical simulation, the model provides a new interpretation of the business cycle and an explanation for the empirical phenomenon of countercyclical mark up. |
Databáze: | OpenAIRE |
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