In this paper we propose a model in which the real side of the economy, described via a Keynesian good market approach, interacts with the stock market with heterogeneous speculators, i.e., optimist and pessimist fundamentalists. Employing analytical and numerical tools, we detect the mechanisms...

We develop a macroeconomic behavioral model in order to analyze the interactions between real and financial markets. The real subsystem is represented by a simple Keynesian income-expenditure model, while the financial subsystem is represented by an equilibrium stock market with heterogeneous...

In this paper we show how a rich variety of dynamical behaviors can emerge in the standard Keynesian income-expenditure model when a nonlinearity is introduced, both in the cases with and without endogenous government spending. A specific sigmoidal functional form is used for the adjustment...

We develop a model with intra-generational consumption externalities, based on the overlapping generation version of Diamond (1965) model. More specifically, we consider a two-period lived overlapping generation economy, assuming that the utility of each consumer depends also on the average...

In this paper we analyze a recurrence , where is a weighted power mean of ,…., . Such an iteration scheme has been proposed to model a class of non-linear forward-looking economic models ( the state today is affected by tomorrow’ s expectation ) under bounded rationality; the agents employ a...

Developing a model in which heterogeneity arises among two groups of fundamentalists that follow gurus, we focus on the dynamic effects of increasing heterogeneity. We show that an increasing degree of heterogeneity leads firstly (i) to insurgence of a pitchfork bifurcation and, secondly (ii)...

We analyse the effects on industry structure of non strategic learning by doing with spillovers in a differentiated oligopoly `a la Bertrand. The dynamics is driven by a non linear learning curve. Conditions for shakeouts are analysed, focusing on the key factors affecting them. Policy...

We analyse the effect of learning by doing on firm performances when profit maximization follows a rule of thumb. Three regimes are compared: the technology sharing cartels, the oligopoly with spillovers, the proprietary regime. We show the dynamic implications on the industrial structure when...

Nel presente lavoro abbiamo costruito un modello di determinazione del tasso di cambio in presenza di agenti eterogenei (Banca Centrale, Investitori e Market Makers). Ampie fluttuazioni del tasso di cambio sono il risultato di dinamica endogena, in particolare scaturiscono dall’interazione...

Developing a model with a switching mechanism, we show how complex dynamics can be generated even though heterogeneity arises among agents with the same trading rules (fundamentalists). We assume that there are two experts which are imitated by other operators. We show that (i) market...