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An Agent Based Macroeconomic Model with Social Classes and Endogenous Crises

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  • Russo, Alberto

Abstract

This paper proposes an agent based macroeconomic model in which income distribution and wealth accumulation depend on the role that agents play in productive activities, that is capitalists or workers. In this framework, social class dynamics underlie the endogenous process of firm formation. The focus is on the interplay between the evolution of social structure and macroeconomic dynamics and on how business cycles and crises may endogenously emerge as the result of the interaction between financial and real factors underlying the process of capitalist production.

Suggested Citation

  • Russo, Alberto, 2016. "An Agent Based Macroeconomic Model with Social Classes and Endogenous Crises," MPRA Paper 77175, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:77175
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    References listed on IDEAS

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    More about this item

    Keywords

    heterogeneous interacting agents; social structure; macroeconomic dynamics; inequality; crisis.;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • P10 - Economic Systems - - Capitalist Systems - - - General

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