Output dynamics and (s, S) strategies in an agent based macroeconomic model

Oscar Alonso, Hiroshi Deguchi, Yusuke Koyama

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

A well known result from (Caplin and Spulber 1987) shows that even in the presence of price rigidity, aggregated product of an economy may be unaffected by changes in the money supply. Here we relax the assumptions of continuity of such result by using agent based simulation, and analyzing the dynamics of output under such conditions. We show that in the agent-based version of the model money is no longer neutral and cyclic dynamics emerge. Such dynamics is influenced mainly by expectations of income, expectations of inflation, and implementations of (s, S) strategies. Oscillations in output grow stronger as the economy departs from initial equilibrium conditions.

Original languageEnglish
Title of host publicationESM 2010 - 2010 European Simulation and Modelling Conference
PublisherEUROSIS
Pages227-231
Number of pages5
Publication statusPublished - 2010
Externally publishedYes
Event24th Annual European Simulation and Modelling Conference, ESM 2010 - Hasselt, Belgium
Duration: 2010 Oct 252010 Oct 27

Other

Other24th Annual European Simulation and Modelling Conference, ESM 2010
CountryBelgium
CityHasselt
Period10/10/2510/10/27

Fingerprint

Rigidity

Keywords

  • (s, S) Strategies
  • Agent-Based Macroeconomics
  • Monetary Neutrality

ASJC Scopus subject areas

  • Modelling and Simulation

Cite this

Alonso, O., Deguchi, H., & Koyama, Y. (2010). Output dynamics and (s, S) strategies in an agent based macroeconomic model. In ESM 2010 - 2010 European Simulation and Modelling Conference (pp. 227-231). EUROSIS.

Output dynamics and (s, S) strategies in an agent based macroeconomic model. / Alonso, Oscar; Deguchi, Hiroshi; Koyama, Yusuke.

ESM 2010 - 2010 European Simulation and Modelling Conference. EUROSIS, 2010. p. 227-231.

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Alonso, O, Deguchi, H & Koyama, Y 2010, Output dynamics and (s, S) strategies in an agent based macroeconomic model. in ESM 2010 - 2010 European Simulation and Modelling Conference. EUROSIS, pp. 227-231, 24th Annual European Simulation and Modelling Conference, ESM 2010, Hasselt, Belgium, 10/10/25.
Alonso O, Deguchi H, Koyama Y. Output dynamics and (s, S) strategies in an agent based macroeconomic model. In ESM 2010 - 2010 European Simulation and Modelling Conference. EUROSIS. 2010. p. 227-231
Alonso, Oscar ; Deguchi, Hiroshi ; Koyama, Yusuke. / Output dynamics and (s, S) strategies in an agent based macroeconomic model. ESM 2010 - 2010 European Simulation and Modelling Conference. EUROSIS, 2010. pp. 227-231
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