Response of Firm Agent Network to Exogenous Shock

Yuichi Ikeda, Hideaki Aoyama, Hiroshi Iyetomi, Yoshi Fujiwara, Wataru Souma and Taisei Kaizoji ()

Quantitative Finance Papers from arXiv.org

Abstract: This paper describes an agent-based model of interacting firms, in which interacting firm agents rationally invest capital and labor in order to maximize payoff. Both transactions and production are taken into account in this model. First, the performance of individual firms on a real transaction network was simulated. The simulation quantitatively reproduced the cumulative probability distribution of revenue, material cost, capital, and labor. Then, the response of the firms to a given exogenous shock, defined as a sudden change of gross domestic product, is discussed. The longer tail in cumulative probability and skewed distribution of growth rate are observed for a high growth scenario.

Date: 2006-07

Downloads: (external link)
http://arxiv.org/abs/physics/0607287 Abstract (text/html)
http://arxiv.org/pdf/physics/0607287 Latest version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:arx:papers:physics/0607287

Access Statistics for this paper

More papers in Quantitative Finance Papers from arXiv.org
Series data maintained by arXiv administrators ().