Industrial dynamics, fiscal policy and R&D: Evidence from a computational experiment
A. Russo, M. Catalano, E. Gaffeo, Mauro Gallegati and Mauro Napoletano
Journal of Economic Behavior & Organization (2007)
We present an agent-based computational model in which bounded rational firms and workers trade on fully decentralized markets for final goods and labor by means of random matching protocols. The model replicates several macroeconomic phenomena regularly observed in the data, with aggregate features emerging from the localized interactions of individual entities. The model is then used as a computational laboratory to run an experiment on the role of fiscal policy in increasing macroeconomic performance.