Advanced Search
MyIDEAS: Login to save this article or follow this journal

Uncertainty fluctuations and multi-agent economies with equilibrium

Contents:

Author Info

  • Zajac Jaroslav
Registered author(s):

    Abstract

    This article discusses some issues involved in economies composed of dynamically interacting agents, who makes decisions about consumption, transformation and exchange of information, and other resources, expand their facilities, formulate their strategies in order to achieve specific aims, and their strategies are taken in an asynchronous and distributed manner. Agents may combine different roles within an economic system undergoing rapid technological and structural change in order to find adequate approaches to treating non-stationarity and uncertainty, bounded rationality of agents, rich variety, and complexity of dynamic interrelations between different agents. Internal uncertainty is due to the fact that each agent takes decisions without full knowledge about states and actions of other agents, and all agents have the flexibility to choose different behavioural patterns. Complexity leads to the multitude of positive and negative feedbacks in the system. Under different values of system parameters, these feedbacks can lead to different equilibria, and even to chaotic behaviour. In certain points the system abruptly switches between different equilibria with arbitrarily small change of itself. The bounded rationality of agents implies that their decisions on their actions result from the set of heuristics, which vary according to changing of informational patterns, environment and goals. When the agents inject money through an open market operation, only those agents that are currently trading absorb these injections, and agents must pay a fixed cost to transfer money between the asset market and the goods market. Money injections are absorbed by active agents, the injections increase active agent's current consumption. Open markets operations have been thought to have liquidity effects: money injections lead initially to a decline in short-term nominal interest rates, in the case of segmented asset markets they can produce both two different features, whereas persistent injections increase expected inflation, but have no effects on real interest rates. However, in dynamic setting and in the case of the expected utility maximizing approach, one has to distinguish between individual's utility smoothing motive and his risk aversion. The effect of tax rate uncertainty on labour supply and savings when the agent both works and saves during fluctuations is analysed.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/1350485042000228277&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

    Volume (Year): 11 (2004)
    Issue (Month): 6 ()
    Pages: 397-400

    as in new window
    Handle: RePEc:taf:apeclt:v:11:y:2004:i:6:p:397-400

    Contact details of provider:
    Web page: http://www.tandfonline.com/RAEL20

    Order Information:
    Web: http://www.tandfonline.com/pricing/journal/RAEL20

    Related research

    Keywords:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Andres Erosa & Martin Gervais, 2001. "Optimal taxation in infinitely-lived agent and overlapping generations models : a review," Economic Quarterly, Federal Reserve Bank of Richmond, issue Spr, pages 23-44.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:11:y:2004:i:6:p:397-400. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.