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Response of firm agent network to exogenous shock

Author

Listed:
  • Ikeda, Yuichi
  • Aoyama, Hideaki
  • Iyetomi, Hiroshi
  • Fujiwara, Yoshi
  • Souma, Wataru
  • Kaizoji, Taisei

Abstract

This paper describes an agent-based model of interacting firms, in which interacting firm agents rationally invest capital and labor in order to maximize payoff. Both transactions and production are taken into account in this model. First, the performance of individual firms on a real transaction network was simulated. The simulation quantitatively reproduced the cumulative probability distribution of revenue, material cost, capital, and labor. Then, the response of the firms to a given exogenous shock, defined as a sudden change of gross domestic product, is discussed. The longer tail in cumulative probability and skewed distribution of growth rate are observed for a high growth scenario.

Suggested Citation

  • Ikeda, Yuichi & Aoyama, Hideaki & Iyetomi, Hiroshi & Fujiwara, Yoshi & Souma, Wataru & Kaizoji, Taisei, 2007. "Response of firm agent network to exogenous shock," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 382(1), pages 138-148.
  • Handle: RePEc:eee:phsmap:v:382:y:2007:i:1:p:138-148 DOI: 10.1016/j.physa.2007.02.016
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    References listed on IDEAS

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    1. Ikeda, Yuichi & Souma, Wataru & Aoyama, Hideaki & Iyetomi, Hiroshi & Fujiwara, Yoshi & Kaizoji, Taisei, 2007. "Quantitative agent-based firm dynamics simulation with parameters estimated by financial and transaction data analysis," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 375(2), pages 651-667.
    2. Fujiwara, Yoshi, 2004. "Zipf law in firms bankruptcy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 337(1), pages 219-230.
    3. Silver, Jonathan & Slud, Eric & Takamoto, Keiji, 2002. "Statistical Equilibrium Wealth Distributions in an Exchange Economy with Stochastic Preferences," Journal of Economic Theory, Elsevier, vol. 106(2), pages 417-435, October.
    4. Fujiwara, Yoshi & Aoyama, Hideaki & Di Guilmi, Corrado & Souma, Wataru & Gallegati, Mauro, 2004. "Gibrat and Pareto–Zipf revisited with European firms," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 112-116.
    5. Aoyama, Hideaki & Souma, Wataru & Fujiwara, Yoshi, 2003. "Growth and fluctuations of personal and company's income," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 324(1), pages 352-358.
    6. Souma, Wataru & Fujiwara, Yoshi & Aoyama, Hideaki, 2004. "Random matrix approach to shareholding networks," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 73-76.
    7. Mauro Gallegati & Gianfranco Giulioni & Nozomi Kichiji, 2003. "Complex Dynamics And Financial Fragility In An Agent-Based Model," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 267-282.
    8. Jean-Philippe Bouchaud & Marc Mezard, 2000. "Wealth condensation in a simple model of economy," Science & Finance (CFM) working paper archive 500026, Science & Finance, Capital Fund Management.
    9. Aoyama, Hideaki & Fujiwara, Yoshi & Souma, Wataru, 2004. "Kinematics and dynamics of Pareto–Zipf's law and Gibrat's law," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 117-121.
    10. Fujiwara, Yoshi & Di Guilmi, Corrado & Aoyama, Hideaki & Gallegati, Mauro & Souma, Wataru, 2004. "Do Pareto–Zipf and Gibrat laws hold true? An analysis with European firms," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 335(1), pages 197-216.
    11. Bouchaud, Jean-Philippe & Mézard, Marc, 2000. "Wealth condensation in a simple model of economy," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 282(3), pages 536-545.
    12. Ikeda, Y. & Kubo, O. & Kobayashi, Y., 2004. "Forecast of business performance using an agent-based model and its application to a decision tree Monte Carlo business valuation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 344(1), pages 87-94.
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