Business Cycle in a Macromodel with Oligopoly and Agents’ Heterogeneity: An Agent-Based Approach

Autor: Marco Mazzoli, Pietro Terna, Matteo Morini
Rok vydání: 2017
Předmět:
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