Concentration, stagnation and inequality: An agent-based approach

Mind the Knowledge Gap!The Origins of Declining Business Dynamism in a Macroagent-Based Model

“…We build on this insight but in a different setting, exploiting the granularity and flexibility of the agent-based approach to represent a detailed process of knowledge generation and diffusion, grounded on the distinction between producers of new technology (innovators) and adopters (entrepreneurs). We contribute, therefore, also to the growing body of literature on agent-based macroeconomics (Delli Gatti et al, 2011Dawid and Delli Gatti, 2018;Dosi and Roventini, 2019), with a special focus on technical change, growth and inequality (Dawid, 2006;Russo et al, 2007;Caiani et al, 2019;Dosi et al, 2021;Bertani et al, 2021;Fanti, 2021;Fierro et al, 2022;Terranova and Turco, 2022). In particular, our paper closely aligns with research that emphasizes the importance of complementary skills and accumulated knowledge in driving technology adoption and industrial dynamics (Dawid et al, 2019;Hötte, 2020;Dosi et al, 2022).…”

“…5 In this paper we build on this evidence to explore the causes of declining business dynamism and its macroeconomic and industrial consequences by means of a macroeconomic agent-based model (ABM) centered upon knowledge accumulation. The present setting is an extended variant of the model developed by Terranova and Turco (2022), i.e., a macroeconomic ABM with capital and credit (along the lines of Assenza et al (2015)) augmented with technical change and knowledge accumulation. By means of simulation experiments we explore the conditions under which a decline in knowledge diffusion at the micro level leads to an emergent dynamics of declining business dynamism at the aggregate level.…”

Energy Price Shocks and Stabilization Policies in a Multi-Agent Macroeconomic Model for the Euro Area

“…So far, we have examined the economic effects of different types of macro-stabilization policies in response to energy price increases at the aggregate and sectoral levels. Departing from the representative agent hypothesis of the standard approach, a key feature of ABMs lies in the heterogeneity of agents' characteristics and behavioural rules, which allows addressing several issues related to income inequality and market structure (Caiani et al, 2019;Terranova and Turco, 2022).…”

Chaos, Granularity, and Instability in Economic Systems of Countries With Emerging Market Economies: Relationships Between GDP Growth Rate and Increasing Internal Inequality

“…The dynamics of granular wealth flows, generated by positive changes in the GDP growth rate in countries with emerging economies, are moved by the definition of the entity of agitation of all income exchanges among agents, including those created by new productive actions [48]. ASSUMPTION 1(2.2): This measure describes income fluctuations within the population and can be expressed as the mean squared of the wealth vector , rather as , and can provide an indication of the local mobility of granules of wealth.…”