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A Generalised Computational Model Of Firms Production And Interactions: Preliminary Results On Industrial Dynamics

In: Industry And Labor Dynamics The Agent-Based Computational Economics Approach

Author

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  • TOMMASO CIARLI

    (Università di Ferrara and University of Birmingham, V. del Gregorio 13, 44100 Ferrara, Italy)

  • MARCO VALENTE

    (Università dell’Aquila, P.le del Santuario 19, 67040 Roio Poggio (L’Aquila), Italy)

Abstract

In the present work we describe a model of production processes, with a detailed representation of vertical interactions across sectors, in an input-output framework. Firms are heterogeneous agents, each with its competencies in production, using different inputs with different characteristics, acting in a specific sector. Firms within each sector produce similar goods, but with different quality features appealing to the sector’s demand. We show, through different simulation settings, that the way in which the process is modelled is both extremely flexible and its results are robust under standard basic economics assumptions. As discussed in a methodological section we argue that those characteristics of the model are important in order to study the production structure to understand different industrial dynamics through a micro perspectives. In particular, we propose one particular framework, which synthesises the aspects of a broader research for which this model has been developed.

Suggested Citation

  • Tommaso Ciarli & Marco Valente, 2004. "A Generalised Computational Model Of Firms Production And Interactions: Preliminary Results On Industrial Dynamics," World Scientific Book Chapters, in: Roberto Leombruni & Matteo Richiardi (ed.), Industry And Labor Dynamics The Agent-Based Computational Economics Approach, chapter 15, pages 297-331, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9789812702258_0015
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