Template-type: ReDIF-Paper 1.0
Author-Name: Meijers H.
Author-Email: h.meijers@maastrichtuniversity.nl
Author-Workplace-Name: UNU-MERIT, and SBE, Maastricht University
Author-Name: Nomaler Z.O.
Author-Email: nomaler@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, and TU Eindhoven
Author-Name:  Verspagen B.
Author-Email: verspagen@merit.unu.edu
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.
Classification-JEL: E00, E32, B50, B52
Keywords: Demand, Credit, Economic dynamics, Macroeconomics, Price mechanisms,
	 Stock-flow, Bankrupties, Business cycles, Agent-based simulation,
	 Microsimulation
Series: UNU-MERIT Working Papers
Creation-Date: 20140531
Number: 2014-047
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-047.pdf
File-Format: application/pdf
File-Size: 1286 Kb
Handle: RePEc:unm:unumer:2014047