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An Agent Based Macroeconomic Model with Social Classes and Endogenous Crises

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  • Alberto Russo

    (Università Politecnica delle Marche)

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

  • Alberto Russo, 2017. "An Agent Based Macroeconomic Model with Social Classes and Endogenous Crises," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(3), pages 285-306, November.
    • Handle: RePEc:spr:italej:v:3:y:2017:i:3:d:10.1007_s40797-017-0060-4
    DOI: 10.1007/s40797-017-0060-4
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    3. Nikolaos Th. Chatzarakis, 2021. "Revisiting the role and consequences of Econophysics from a Marxian perspective," Bulletin of Political Economy, Bulletin of Political Economy, vol. 15(1), pages 45-68, June.
    4. Losoncz, Miklós & Czelleng, Ádám, 2020. "A jövedelemegyenlőtlenség makrogazdasági hatásai szimulációs megközelítésben [Some macroeconomic effects of income inequalities in a simulation approach]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 495-511.
    5. Marco Civico, 2019. "The Dynamics of Language Minorities: Evidence from an Agent-Based Model of Language Contact," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 22(4), pages 1-3.
    6. Emiliano Brancaccio & Mauro Gallegati & Raffaele Giammetti, 2022. "Neoclassical influences in agent‐based literature: A systematic review," Journal of Economic Surveys, Wiley Blackwell, vol. 36(2), pages 350-385, April.

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    More about this item

    Keywords

    Heterogeneous interacting agents; Social structure; Macroeconomic dynamics; Inequality; Crisis;
    All these keywords.

    JEL classification:

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

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