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Production and Finance in EURACE

Author

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  • Sander Van Der Hoog

    () (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille)

  • Christophe Deissenberg

    () (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique - ECM - Ecole Centrale de Marseille)

  • Herbert Dawid

    () (Dept. of Business Administration - Bielefeld University)

Abstract

EURACE is a major FP6 STREP project aiming at constructing anexhaustive agent-based model of the European economy, populated by avery large number of sophisticated, autonomous agents. The EURACEmodel, which has an explicit spatial structure, includes all the majormarkets considered in quantitative macroeconomic modelling (consumergoods, investment goods, labour, credit and finance). It offers aunique opportunity for studying, from a new perspective, theempirically observed but theoretically poorly understood link betweenthe real and the financial sphere of a modern economy. After summarilypresenting the main features of EURACE, this paper describes in moredetail the newly developed financial management module thatintermediates between the real and the financial spheres in EURACE. Ina nutshell, this module defines the link between the hiring andinvestment behavior of the firms as a function of the revenues theyobtain by selling their products, of the money they can raise on thecredit and financial markets, of their dividend policy, and othermajor aspects of financial decision-making.

Suggested Citation

  • Sander Van Der Hoog & Christophe Deissenberg & Herbert Dawid, 2008. "Production and Finance in EURACE," Working Papers halshs-00339758, HAL.
  • Handle: RePEc:hal:wpaper:halshs-00339758 Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00339758
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    References listed on IDEAS

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    Cited by:

    1. Bernardo Alves Furtado & Isaque Daniel Eberhardt, 2016. "Modelo Espacial Simples de uma Economia com Agentes: uma proposta metodológica," Discussion Papers 2181, Instituto de Pesquisa Econômica Aplicada - IPEA.
    2. Lengnick, Matthias, 2013. "Agent-based macroeconomics: A baseline model," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 102-120.
    3. Caiani, Alessandro & Godin, Antoine & Caverzasi, Eugenio & Gallegati, Mauro & Kinsella, Stephen & Stiglitz, Joseph E., 2016. "Agent based-stock flow consistent macroeconomics: Towards a benchmark model," Journal of Economic Dynamics and Control, Elsevier, vol. 69(C), pages 375-408.
    4. Assenza, Tiziana & Delli Gatti, Domenico & Grazzini, Jakob, 2015. "Emergent dynamics of a macroeconomic agent based model with capital and credit," Journal of Economic Dynamics and Control, Elsevier, vol. 50(C), pages 5-28.
    5. Bernardo Alves Furtado & Isaque Daniel Rocha Eberhardt, 2016. "A Simple Agent-Based Spatial Model of the Economy: Tools for Policy," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 19(4), pages 1-12.
    6. Gualdi, Stanislao & Tarzia, Marco & Zamponi, Francesco & Bouchaud, Jean-Philippe, 2015. "Tipping points in macroeconomic agent-based models," Journal of Economic Dynamics and Control, Elsevier, vol. 50(C), pages 29-61.
    7. Furtado, Bernardo Alves & Eberhardt, Isaque Daniel Rocha, 2015. "Modelo espacial simples da economia: uma proposta teórico-metodológica
      [A simple spatial economic model: a proposal]
      ," MPRA Paper 67005, University Library of Munich, Germany.
    8. repec:kap:compec:v:50:y:2017:i:2:d:10.1007_s10614-016-9617-9 is not listed on IDEAS

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    Keywords

    Agent-based macroeconomics; Financial policy; Parallel computing;

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