Agent-Based Macroeconomic Modeling and Policy Analysis

Dawid, Herbert; Gemkow, Simon; Harting, Philipp; Hoog, Sander van der; Neugart, Michael

doi:10.1093/oxfordhb/9780199844371.013.19

Cited by 15 publications

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“…A non-exhaustive list could include the K+S model, seeDosi et al (2010Dosi et al ( , 2013Dosi et al ( , 2015, the set of models developed by the Ancona research group(Caiani et al. (2015); Riccetti et al (2015); Russo et al (2016)), the CC-MABM (Assenza et al (2015)), the Mark I CRISIS model (Klimek et al (2015); Gualdi et al (2015)), Iceace (Erlingsson et al (2014)), Eurace(Cincotti et al (2012a)) and Eurace@UNIBI(Dawid et al (2016)) …”

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confidence: 99%

From financial instability to green finance: the role of banking and credit market regulation in the Eurace model

et al. 2018

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We investigate appropriate banking and regulatory policies aimed at pushing the banking sector to shift from speculative lending, cause of asset bubbles and economic crises, to green investments lending, so to foster the transition to a more energy efficient production technology. For this purpose, we consider an enriched version of the Eurace model, which includes heterogenous capital goods, allowing for different degrees of energy efficiency in the production technology. Credit money in Eurace is endogenous and limited by Basel capital adequacy regulation on the supply side, while on the demand side it is determined by firms' investments and households' house purchasing. We introduce a differentiation of capital requirements according to the destination of lending, demanding higher banks' capital in the case of speculative lending, thus encouraging banks to finance firms investments. As up-to-date capital goods have better energy efficiency in the model design, a higher pace of investments implies also a positive environmental effect. Results suggest that the proposed regulation is able to foster investments and capital accumulation in the short term, improving the energy efficiency of firms. However, reducing mortgages with a restrictive regulation has a negative impact on total private credit, and thus on endogenous money supply, weakening consumption and aggregate demand. In the long term, the contraction of total credit becomes stronger, and the negative outcomes on aggregate demand also affect investments. Therefore, in the long run, the positive effects on capital and energy efficiency become negligible, while the main economic indicators deteriorate. JEL codes: E51, Q58, C63

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From financial instability to green finance: the role of banking and credit market regulation in the Eurace model

et al. 2018

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“…Since this paper uses the benchmark version of the Eurace@Unibi model as fully described in Dawid et al (2019), in the following subsection we only sketch the parts of the model which are most crucial for the results presented here and refer the reader for more details to previous publications, in particular Dawid et al (2014;2018a;.…”

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confidence: 99%

“…For our simulation experiment we use a standard constellation of parameters (see Tables 2 and 3 in Appendix A), which has been determined in a combination of a direct estimation process and an indirect calibration and has been used in several previous studies based on the Eurace@Unibi model (see Dawid et al (2018a;).…”

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confidence: 99%

Distributional effects of technological regime changes: hysteresis, concentration and inequality dynamics

Dawid

Hepp

2021

Rev Evol Polit Econ

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In this paper, we study the effect of different types of technological regime changes on the evolution of industry concentration and wage inequality. Using a calibrated agent-based macroeconomic framework, the Eurace@Unibi model, we consider scenarios where the new regime is characterized by a finite time period of more frequent respectively more substantial changes in the frontier technology compared to the old regime. We show that under both scenarios, the regime change leads to an increase in the heterogeneity of productivity in the firm population and to increased market concentration, where effects are much less pronounced if the new regime differs from the old one with respect to the frequency of innovations. If the new regime is characterized by an increase of the size of the frontier jumps along the technological trajectory, the evolution of the wage inequality has an inverted U-shape with a large fraction of workers profiting in the very long run from high wages offered by dominant high-tech firms. Finally, it is shown that (observable) heterogeneity of worker skills plays an important role in generating these dynamic effects of technological regime changes.

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Section: Parametrizationmentioning

confidence: 99%

Distributional Effects of Technological Regime Changes: Hysteresis, Concentration and Inequality Dynamics

Dawid

Hepp

2021

SSRN Journal

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In this paper we study the effect of different types of technological regime changes on the evolution of industry concentration and wage inequality. Using a calibrated agent-based macroeconomic framework, the Eurace@Unibi model, we consider scenarios where the new regime is characterized by more frequent respectively more substantial changes in the frontier technology compared to the old regime. We show that under both scenarios the regime change leads to an increase in the heterogeneity of productivity in the firm population and to increased market concentration, where effects are much less pronounced if the new regime differs from the old one with respect to the frequency of innovations. If the new regime is characterized by an increase of the size of the frontier jumps along the technological trajectory, the evolution of the wage inequality has an inverted U-shape with a large fraction of workers profiting in the very long run from high wages offered by dominant high-tech firms. Finally, it is shown that (oberservable) heterogeneity of worker skills plays an important role in generating these dynamic effects of technological regime changes.

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Agent-Based Macroeconomic Modeling and Policy Analysis

Cited by 15 publications

References 0 publications

From financial instability to green finance: the role of banking and credit market regulation in the Eurace model

From financial instability to green finance: the role of banking and credit market regulation in the Eurace model

Distributional effects of technological regime changes: hysteresis, concentration and inequality dynamics

Distributional Effects of Technological Regime Changes: Hysteresis, Concentration and Inequality Dynamics

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