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Industrial dynamics, fiscal policy and R&D: Evidence from a computational experiment

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Author Info
Russo, Alberto
Catalano, Michele
Gaffeo, Edoardo
Gallegati, Mauro
Napoletano, Mauro

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Abstract

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.

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File URL: http://www.sciencedirect.com/science/article/B6V8F-4P06C7C-3/2/416cc7473cf0de7c8b42c44372711e72
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Publisher Info
Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 64 (2007)
Issue (Month): 3-4 ()
Pages: 426-447
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Handle: RePEc:eee:jeborg:v:64:y:2007:i:3-4:p:426-447

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Related research
Keywords: Agent-based computational models Industrial dynamics Fiscal policy;

Cited by:
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  1. Giorgio Fagiolo & Andrea Roventini, 2008. "On the Scientific Status of Economic Policy: A Tale of Alternative Paradigms," LEM Papers Series 2008/03, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy. [Downloadable!]
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