Complex Dynamics and Empirical Evidence
34 Pages Posted: 12 May 2004
Date Written: May 5, 2004
Standard macroeconomics, based on a reductionist approach centered on the representative agent, is badly equipped to explain the empirical evidence where heterogeneity and industrial dynamics are the rule. In this paper we show that a simple agent-based model of heterogeneous financially fragile agents is able to replicate a large number of scaling type stylized facts with a remarkable degree of statistical precision.
Keywords: Business fluctuations, power law distribution, agent-based model
JEL Classification: E32, C63, C82
Suggested Citation: Suggested Citation
Delli Gatti, Domenico and Gaffeo, Edoardo and Giulioni, Gianfranco and Gallegati, Marco and Kirman, Alan and Palestrini, Antonio and Russo, Alberto, Complex Dynamics and Empirical Evidence (May 5, 2004). Available at SSRN: https://ssrn.com/abstract=545223 or http://dx.doi.org/10.2139/ssrn.545223
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