Abstract

https://ssrn.com/abstract=1973855
 
 

References (47)



 
 

Citations (1)



 


 



Debt Deleveraging and Business Cycles: An Agent-Based Perspective


Marco Raberto


affiliation not provided to SSRN

Andrea Teglio


affiliation not provided to SSRN

Silvano Cincotti


University of Genoa

2011

Economics Discussion Paper No. 2011-31

Abstract:     
The recent financial crises pointed out the central role of public and private debt in modern economies. However, even if debt is a recurring topic in discussions about the current economic situation, economic modelling does not take into account debt as one of the crucial determinants of economic dynamics. Our contribution, in this paper, is to investigate the issues of borrowing and debt load by means of computational experiments, performed in the environment of the agent-based Eurace simulator. We aim to shed some light on the relation between debt and the main economic indicators. Our results clearly confirm that the amount of credit money in the economy is a very important variable, that can affect economic performance in a twofold way: fostering growth or pushing the economy into recession or crisis. The outcomes of our experiments show a rich scenario of interactions between real and financial variables in the economy, and therefore represents a truly innovative tool for the study of economics.

Number of Pages in PDF File: 37

Keywords: Agent-based computational economics, debt, leverage, credit money, economic crisis

JEL Classification: E2, E3, E44, E51


Open PDF in Browser Download This Paper

Date posted: December 17, 2011  

Suggested Citation

Raberto, Marco and Teglio, Andrea and Cincotti, Silvano, Debt Deleveraging and Business Cycles: An Agent-Based Perspective (2011). Economics Discussion Paper No. 2011-31. Available at SSRN: https://ssrn.com/abstract=1973855 or http://dx.doi.org/10.2139/ssrn.1973855

Contact Information

Marco Raberto (Contact Author)
affiliation not provided to SSRN
Andrea Teglio
affiliation not provided to SSRN
No Address Available
Silvano Cincotti
University of Genoa ( email )
DIME-DOGE.I
via Opera Pia, 15
Genova, 16145
Italy
Feedback to SSRN


Paper statistics
Abstract Views: 1,068
Downloads: 243
Download Rank: 98,896
References:  47
Citations:  1