Complex Dynamics and Empirical Evidence

34 Pages Posted: 12 May 2004  

Domenico Delli Gatti

Universita' Cattolica, Milano

Edoardo Gaffeo

Università degli Studi di Udine - Department of Economics

Gianfranco Giulioni

Universita' Politecnica delle Marche, Ancona - Department of Economics

Marco Gallegati

Università Politecnica delle Marche - Faculty of Economics

Alan Kirman

GREQAM

Antonio Palestrini

Universita di Teramo

Alberto Russo

Università Politecnica delle Marche, Ancona - Department of Management

Date Written: May 5, 2004

Abstract

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

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

Domenico Delli Gatti

Universita' Cattolica, Milano ( email )

20123 Milano
Italy
+39 02 72342499 (Phone)
+39 02 72342923 (Fax)

Edoardo Gaffeo

Università degli Studi di Udine - Department of Economics ( email )

Via Tomadini 30
33100 Udine
Italy

Gianfranco Giulioni

Universita' Politecnica delle Marche, Ancona - Department of Economics ( email )

Piazzale Martelli 8
Ancona, 18039
Italy
+39 071 2207110 (Phone)
+39 071 2207102 (Fax)

Marco Gallegati (Contact Author)

Università Politecnica delle Marche - Faculty of Economics ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

Alan Kirman

GREQAM ( email )

Centre de la Vieille Charité
2, rue de la Charité
Marseille, 13002
France
+3391140770 (Phone)
+3391900227 (Fax)

Antonio Palestrini

Universita di Teramo ( email )

Via R. Balzarini 1, Località Colleparco
I-64124 Teramo
Italy
+39 0733 773473 (Phone)
+39 0861 266665 (Fax)

Alberto Russo

Università Politecnica delle Marche, Ancona - Department of Management ( email )

Piazzale Martelli, 8
60121 Ancona
Italy

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