In this work, we employ an agent-based integrated assessment model to study the likelihood of transition to green, sustainable growth in presence of climate damages. The model comprises heterogeneous fossil-fuel and renewable plants, capital- and consumption-good firms and a climate box linking greenhouse gasses emission to temperature dynamics and microeconomic climate shocks affecting labour productivity […]
In this work we study the granular origins of business cycles and their possible underlying drivers. As shown by Gabaix (2011), the skewed nature of firm size distributions implies that idiosyncratic (and independent) firm-level shocks may account for a significant portion of aggregate volatility. Yet, we question the original view grounded on “supply granularity”, as […]
ISIGrowth is a 3-year EC Horizon 2020 funded project aimed at offering comprehensive diagnostics on the relationship between innovation, employment dynamics and growth in an increasingly globalized and financialized world economy. The project will provide a coherent policy toolkit to achieve the Europe 2020 objectives of smart, sustainable and inclusive growth. The theoretical foundation is […]
The global economic system is a highly interlinked network, comprised of heterogeneous industries in different countries. In such a complex system, a negative shock to the production of any industrial sector may have two distinct effects on the remaining industrial sectors: on the one hand by increasing/decreasing production it will demand more/less inputs from other […]
We provide evidence about the process of financialization in Europe in the period 1999-2016. We combine different sources of data (ECB Data Warehouse, BvD Orbis Database, Bank Scope) and we compute different indicators that allow us to grasp different features of the financialization process in the Euro Area and in a group of selected countries. […]
We analyze the individual and macroeconomic impacts of heterogeneous expectations and action rules within an agent-based model populated by heterogeneous, interacting firms. Agents have to cope with a complex evolving economy characterized by deep uncertainty resulting from technical change, imperfect information coordination hurdles and structural breaks. In these circumstances, we find that neither individual nor […]
In this work we develop a set of labour market and fiscal policy experiments upon the labour and credit augmented “Schumpeter meeting Keynes” agent-based model. The labour market is declined under two institutional variants, the “Fordist” and the “Competitive” setups meant to capture the historical transition from the Fordist toward the post “Thatcher- Reagan” period. […]
In this paper we present a multi-country, multi-industry agent-based model investigating the different growth patterns of interdependent economies. Each country features a Schumpeterian engine of endogenous technical change which interacts with Keyneasian/Kaldorian demand generation mechanisms. National growth trajectories are driven by firms’ accumulation of technological knowledge, which in turn also leads to emergent specialization patterns […]
