Template-type: ReDif-Paper 1.0
Author-Name: Meijers H.H.M. 
Author-Name: Nomaler Z.O. 
Author-Name: Verspagen B. 
Author-workplace-name: UNU-MERIT
Title: Demand, credit and macroeconomic dynamics: A microsimulation model
Abstract: We develop a microsimulation model for the macroeconomic business cycle.  Our model is based on three main ideas i we want to specify how  macroeconomic coordination is achieved without a dominating influence of  price mechanisms, ii we want to incorporate the stock-flow-consistent  approach that has become popular in post-Keynesian macroeconomics, and  iii we want to allow for bankruptcies as a major mechanism in the  business cycle. Compared to existing stock-flow-consistent models, our  model has relatively few equations. It is operationalized using micro,  agent-based simulation. The results show a clear business cycle that is  driven by accumulation of financial assets and the effects this has on  the real economy. By changing some of the key parameters, we show how  the nature of the business cycle changes as a result of changes in the  assumed behaviour of agents.
Keywords: Current Heterodox Approaches: General; Current Heterodox Approaches: Institutional; Evolutionary; Macroeconomics and Monetary Economics: General; Business Fluctuations; Cycles; 
Classification-JEL: E00; E32; B50; B52; .
Series:  Working Papers
Creation-Date: 2014
Number: 047
File-URL: http://pub.maastrichtuniversity.nl/e03dbd1c-78dd-45a6-9e57-3b35d6a94ecb
File-Format: application/pdf
File-Size: 1286583
Handle: RePEc:unm:unumer:2014047