A Markov Model of Production, Trade, and Money: Theory and Artificial Life Simulation
The 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.
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.
|Date of creation:||Jan 1997|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.santafe.edu/sfi/publications/working-papers.html
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:wop:safiwp:97-01-006. See general information about how to correct material in RePEc.
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.