Micro and macro policies in the Keynes + Schumpeter evolutionary models

Giovanni Dosi, Mauro Napoletano, Andrea Roventini and Tania Treibich
Additional contact information
Tania Treibich: Maastricht University, University of Nice-Sophia Antipolis, Scuola superiore Sant'A

No 2014-19, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: This paper presents the family of the Keynes+Schumpeter (K+S, cf. Dosi et al, 2010, 2013, 2014) evolutionary agent-based models, which study the effects of a rich ensemble of innovation, industrial dynamics and macroeconomic policies on the long-term growth and short-run fluctuations of the economy. The K+S models embed the Schumpeterian growth paradigm into a complex system of imperfect coordination among heterogeneous interacting firms and banks, where Keynesian (demand-related) and Minskian (credit cycle) elements feed back into the meso and macro dynamics. The model is able to endogenously generate long-run growth together with business cycles and major crises. Moreover, it reproduces a long list of macroeconomic and microeconomic stylized facts. Here, we discuss a series of experiments on the role of policies affecting i) innovation, ii) industry dynamics, iii) demand and iv) income distribution. Our results suggest the presence of strong complementarities between Schumpeterian (technological) and Keynesian (demand-related) policies in ensuring that the economic system follows a path of sustained stable growth and employment. Keywords :agent-based model, fiscal policy, economic crises, austerity policies, disequilibrium dynamics Jel : C63, E32, E6, E52, G01, G21, O4

Date: 2014-11
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.ofce.sciences-po.fr/pdf/dtravail/WP2014-19.pdf (application/pdf)

Related works:
Journal Article: Micro and macro policies in the Keynes+Schumpeter evolutionary models (2017)
Working Paper: Micro and macro policies in the Keynes +Schumpeter evolutionary models (2017)
Working Paper: Micro and macro policies in the Keynes +Schumpeter evolutionary models (2017)
Working Paper: Micro and macro policies in the Keynes + Schumpeter evolutionary models (2014)
Working Paper: Micro and macro policies in the Keynes + Schumpeter evolutionary models (2014)
Working Paper: Micro and Macro Policies in Keynes+Schumpeter Evolutionary Models (2014)
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: https://EconPapers.repec.org/RePEc:fce:doctra:1419

Access Statistics for this paper

More papers in Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE) Contact information at EDIRC.
Bibliographic data for series maintained by Francesco Saraceno ().