A Markov Model of Production, Trade, and Money: Theory and Artificial Life Simulation
AbstractThe paper generalizes the Kiyotaki-Wright trade model by treating the trading period as a finite game, so Nash's theorem can be used to prove the existence of equilibrium, and by treating the economy as a Markov process, so an ergodic theorem can be used to show the existence of equilibria with desirable properties (e.g., in which money exists). A Markov model of trade also allows us to add complexity to the economy without adding corresponding complexity to the analysis of the model's properties. The paper also provides artificial life simulations of the Markov economy suggesting that monetary equilibria are dynamically stable and do not require high levels of learning or information processing on the part of agents.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by Santa Fe Institute in its series Working Papers with number 97-01-006.
Date of creation: Jan 1997
Date of revision:
Contact details of provider:
Postal: 1399 Hyde Park Road, Santa Fe, New Mexico 87501
Web page: http://www.santafe.edu/sfi/publications/working-papers.html
More information through EDIRC
Other versions of this item:
- Herbert Gintis, 1997. "A Markov Model of Production, Trade, and Money: Theory and Artificial Life Simulation," Research in Economics 97-01-006e, Santa Fe Institute.
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nunn, Nathan, 2007.
"Historical legacies: A model linking Africa's past to its current underdevelopment,"
Journal of Development Economics,
Elsevier, vol. 83(1), pages 157-175, May.
- Nathan Nunn, 2005. "Historical Legacies: A Model Linking Africa's Past to its Current Underdevelopment," Development and Comp Systems 0508008, EconWPA.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.