A GDP fluctuation model based on interacting firms

Honggang Li and Yan Gao

Physica A: Statistical Mechanics and its Applications, 2008, vol. 387, issue 21, 5225-5230

Abstract: A distinctive feature of the market economies is the short-run fluctuations in output around the trend of long-run growth over time, and we regard this feature is internal to complex economic systems composed of interacting heterogeneous units. To explore such internal mechanisms of macroeconomic fluctuations, we present a multi-agent Keynesian theory-based model, which can provide a good approximation to the key empirical features of the western business cycles in the 20th Century, such as the structure of the autocorrelation function of overall output growth, correlations between the output growth of individual agents over time, the distribution of recessions, etc.

Keywords: GDP fluctuations; Agent-based model; Interacting firms (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:387:y:2008:i:21:p:5225-5230

DOI: 10.1016/j.physa.2008.05.016

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