This paper proposes an agent based macroeconomic model in which income distribution and wealth accumulation depend on the role that agents play in productive activities, that is capitalists or workers. In this framework, social class dynamics underlie the endogenous process of firm formation....

It is empirically noticeable that bubbles do not burst but deflate over time. This paper brings some theoretical foundations to this observation. Using multi-agent-based simulations, the limited-arbitrage theory of the risk of synchronisation and a measure of bubble crashes, it is possible to...

I propose a computational algorithm for estimating heterogeneous agent macro models with micro data. The main challenge is that the state vector is infinite-dimensional and the likelihood of the stationary distribution is intractable. The key feature of the framework is that it minimizes the...

An accommodating monetary policy followed by a sudden increase of the short term interest rate often leads to a bubble burst and to an economic slowdown. Two examples are the Great Depression of 1929 and the Great Recession of 2008. Through the implementation of an Agent Based Model with a...

We introduce a financially constrained production framework in which heterogeneous firms and banks entertain multiple credit connections. The parameters of credit market interaction are estimated from real data in order to reproduce a set of empirical regularities of the Japanese credit market....

In the present paper we analyse the role of dividends distributed by firms and banks, highlighting the effects of their increase on financial instability and macroeconomic dynamics. During the last decades, the financialisation of nonfinancial corporations has been characterised by a shift from...

Starting from the agent-based decentralized matching macroeconomic model proposed in Riccetti et al. (2012), we explore the effects of banking regulation on macroeconomic dynamics. In particular, we study the overall credit exposure and the lending concentration towards a single counterparty,...

An Agent-Based Model (ABM) accounting for tax-morale and loss-aversion was implemented over different network systems with social interactions at the local level to study the phenomenon of tax evasion. This ABM is an innovative model which integrates endogenous characteristics of heterogeneous...

Why did interbank markets freeze during the crisis despite an unprecedented level of policy intervention? This paper seeks to answer that question by combining a realistic, multilayer network structure with an Agent-Based Model of the interbank market. The multilayer network consists of two...

Validation has been an important issue in using the ABM approach. It has been pointed out that deriving the necessary conditions for reproducing specific macro behavior is difficult due to the functional complexity of the models. However, based on the authors' experience in ABM, we believe it is...