1,721,026 research outputs found
Beyond climate economics orthodoxy: impacts and policies in the agent-based integrated-assessment DSK model*
Full text linkInnovation, finance, and economic growth: an agent-based approach
No full textThis paper extends the endogenous growth agent-based model in Fagiolo and Dosi (Struct Change Econ Dyn 14(3):237–273, 2003) to study the finance–growth nexus. We explore industries where firms produce a homogeneous good using existing technologies, perform R&D activities to introduce new techniques, and imitate the most productive practices. Unlike the original model, we assume that both exploration and imitation require resources provided by banks, which pool agent savings and finance new projects via loans. We find that banking activity has a positive impact on growth. However, excessive financialization can hamper growth. Indeed, we find a significant and robust inverted U-shaped relation between financial depth and growth. Overall, our results stress the fundamental (and still poorly understood) role played by innovation in the finance–growth nexus
Reply to Geiger and Stomper: On capital intensity and observed increases in the economic damages of extreme natural disasters
No full textEnergy efficiency policies in an agent-based macroeconomic model
Full text linkEnergy efficiency can help facing the climate crises. Yet the energy intensity has decreased more slowly than required to achieve climate goals. Based on this premise, we build an agent-based model to study the effects of different energy efficiency policies. Policies analysed range from indirect policies – taxes, incentives, and subsidies – to direct technological policies, where a public research laboratory invests in R&D to establish a new technological energy efficiency paradigm. Results reveal that, although most of the policies effectively reduce energy intensity, the research lab is the most efficient in promoting energy efficiency without negative impacts on macroeconomic and public finance conditions. However, the success of this policy requires a long-term commitment, highlighting the importance of complementing this strategy with more “ready to use” measures. The findings also indicate that most policies do not induce significant macroeconomic rebound effects. Concerns about macroeconomic rebound effects may likely be overstated
Technological paradigms, labour creation and destruction in a multi-sector agent-based model
No full textThis paper presents an agent-based model (ABM) of endogenous arrival of technological paradigms and new sectors entailing different patterns of labour creation and destruction, as well as of consumption dynamics. The model, building on the labour-augmented K+S ABM, addresses the long-term patterns of labour demand emerging from heterogeneous forms of technical change. It provides a multi-level, integrated perspective on so called scenarios of the future of work, currently often restricted or to firm-level or to short-time sectoral analyses, and studies the conditions under which labour creation and destruction tend to balance. It is a relatively fair and stable distribution of income granted by a Fordist-type of regulation of the labour market that guarantees that the model never reaches stages of persistent technological unemployment. On the contrary, a systematic mismatch between production and consumption spheres emerges out of a Competitive (post-Fordist) wage-labour nexus, wherein the labour shedding effect of process innovation tends to prevail over the labour creating effect of product innovation
Mission-oriented policies and the “Entrepreneurial State” at work: An agent-based exploration
Full text linkFat-tail distributions and business-cycle models
No full textAbstract
Recent empirical findings suggest that macroeconomic variables are seldom normally distributed. For example, the distributions of aggregate output growth-rate time series of many OECD countries are well approximated by symmetric exponential-power (EP) densities with Laplace fat tails. In this work, we assess whether real business cycle (RBC) and standard medium-scale New Keynesian (NK) models are able to replicate this statistical regularity. We simulate both models, drawing Gaussian- vs Laplace-distributed shocks, and we explore the statistical properties of simulated time series. Our results cast doubts on whether RBC and NK models are able to provide a satisfactory representation of the transmission mechanisms linking exogenous shocks to macroeconomic dynamics
Coping with increasing tides: Evolving agglomeration dynamics and technological change under exacerbating hazards
No full textClimate change and green transitions in an agent-based integrated assessment model
No full textIn this paper 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 and energy demand of firms. Simulation results show that the economy possesses two statistical equilibria: a carbon-intensive lock-in and a sustainable growth path characterized by better macroeconomic performances. Once climate damages are accounted for, the likelihood of a green transition depends on the damage function employed. While energy efficiency shocks (which raise the demand of energy) exert little effects on the macroeconomic performance compared to labour productivity impacts, they disproportionally harm the chances of an energy transition by exacerbating path-dependence in the process of technical change in favour of fossil-fuel technologies. Finally, we run a series of policy experiments on carbon (fossil fuel) taxes and green subsidies. We find that the effectiveness of such market-based instruments is limited, though it also depends upon the different channels climate change affects the economy through. Complementary policies might be required to avoid carbon-intensive lock-ins
- …
