We characterize the evolution over time of a network of credit relations among financial agents as a system of coupled stochastic processes. Each process describes the dynamics of individual financial robustness, while the coupling results from a network of liabilities among agents. The average...

The recent economic events driven by the big financial crisis of 2007-08 has cogently put to the fore the limits and drawbacks of the ruling research paradigm in macroeconomics. This volume goes to the root of the problem by offering a workable alternative to the renowned issue of the...

This challenging book extends standard economic theory to take into account the presence of heterogeneity among economic agents. It argues for an approach to economic analysis which regards the economy as an interactive system with heterogeneous agents and not simply a system which treats...

Borrowing from our experience in agent-based computational economic research from 'bottom-up', this paper considers economic system as multi-level dynamical system that micro-level agents' interaction leads to structural transition in meso-level, which results in macro-level market dynamics with...

The paper investigates how the interplay between business cycles and long-run growth shapes the dynamics of economies characterized by financial market imperfections. Most of standard economic literature has centered the analysis of decentralized economies on the representative agent hypothesis...

This paper investigates the dynamics in a stock market where investors have heterogeneous beliefs about future prices of a risky asset, due both to information asymmetries on the "fundamentals", and to an investor specific vector of parameters that defines the strategy adopted to generate a...

We explore the properties of a credit network characterized by inside credit - i.e. credit relationships connecting downstream (D) and upstream (U) firms - and outside credit - i.e. credit relationships connecting firms and banks. The structure of the network changes over time due to the...

Based on the prices of McDonald's Big Mac hamburger in 11 Eurozone countries over the 1986–2009 period, the present article investigates whether the adoption of the euro was accompanied by an increase in inflation and how far it affected developments in price dispersion. Our results...