In this work it is investigated the survival bias of the firms' size distribution when we select a cohort (balanced panel) of firms following a Kesten type multiplicative process. It is shown that the bias is important, producing more symmetric size''s distributions

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 indicate...

This paper shows a possible modeling strategy of agents' expectation formation in the agent-based models (ABM). After a brief survey about the introduction of expectation in macroeconomics the work discusses the use of the CEE-SAC learning scheme suggested in Hommes (2013)

The paper analyzes the relevance of links among firms in explaining the auto-correlation properties of the aggregate rate of growth of firms. This approach relies on the interaction between idiosyncratic shocks of firms and their network structure. The study uses the adjacency matrix...

Credit network configurations play a crucial role in determining the vulnerability of the economic system. Following the network-based financial accelerator approach, we constructed an agent based model reproducing an artificial credit network that evolves endogenously according to the leverage...

This paper presents an agent based model which underlines the importance of credit network and leverage dynamics in determining the resilience of the system, defining an early warning indicator for crises. The model reproduces macroeconomic dynamics emerging from the interactions of...

There are situations in which the old-fashioned adaptive expectation process seems to provide a good description of agents' behavior (Chow, 2011). Unfortunately, this expectation scheme may not satisfy the necessary rationality condition (unconditional mean-zero error). This paper shows how to...

Agents forming adaptive expectations generally make systematic mistakes. This characterization has fostered the rejection of adaptive expectations in macroeconomics. Experimental evidence, however, shows that in complex environments human subjects frequently rely on adaptive heuristics –...

Agents forming adaptive expectations generally make systematic mistakes. This characterization has fostered the rejection of adaptive expectations in macroeconomics. Experimental evidence, however, shows that in complex environments human subjects frequently rely on adaptive heuristics –...

In this paper we study the relevance of links among firms in explaining the mean and the auto-correlation property of the aggregate total factor productivity rate of growth (Solow residual). Our approach relies on the interaction between idiosyncratic shocks of firms and the network structure of...