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Income distribution and debts in a fragile economy: market processes and macro constraints

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  • Piero Ferri

Abstract

The purpose of the paper is to study fluctuations in a fragile economy, where the role of debt and income distribution is considered. It is based upon a macro approach that emphasizes interactions between market processes and macro constraints within an uncertain environment. By utilizing a regime switching approach, where behavioural functions change when a threshold is violated, robust dynamics can be generated. The model can mimic some aspects of the present evolution of the world economy by means of simulations. Copyright Springer-Verlag 2013

Suggested Citation

  • Piero Ferri, 2013. "Income distribution and debts in a fragile economy: market processes and macro constraints," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 8(2), pages 219-230, October.
    • Handle: RePEc:spr:jeicoo:v:8:y:2013:i:2:p:219-230
    DOI: 10.1007/s11403-012-0091-8
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    References listed on IDEAS

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    6. William A. Brock & Cars H. Hommes, 2001. "A Rational Route to Randomness," Chapters, in: W. D. Dechert (ed.), Growth Theory, Nonlinear Dynamics and Economic Modelling, chapter 16, pages 402-438, Edward Elgar Publishing.
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    More about this item

    Keywords

    Debt; Interactions; Income distribution; Regime switching; Fluctuations; E32; E37; E42;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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