EconPapers    
Economics at your fingertips  
 

Monetary and Fiscal Policy Analysis With an Agent-Based Macroeconomic Model

Haber Gottfried ()
Additional contact information
Haber Gottfried: Department of Economics, Alpen-Adria University Klagenfurt, Universitaetsstrasse 65–67, 9020 Klagenfurt, Austria

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), 2008, vol. 228, issue 2-3, 276-295

Abstract: Macroeconomic policy analysis is a challenge for agent-based models because these types of model are generally much elaborated on the specific market levels for partial (micro) markets, but have been of limited use for macroeconomic policy issues due to calibration and “model closure” issues.Moreover, macroeconomic policy measures at a high level of aggregation, such as general fiscal policy and monetary policy, tend to include several microeconomic aspects determined by the macroeconomic policy makers (i.e. the specific process of money transmission, budget constraints within/for the public sector, etc.), which are not usually captured by agent-based models with an emphasis on microfoundation. Thus, a fully-specified macroeconomic agent-based model, AS1, is applied in this paper. Specifically, the monetary sector is modeled in detail, and both the central bank and the public sector are set up as separate agents with their own expectations and behavior. The paper has two aims: (a) to show that economic policy may be analyzed in this context with more elaborate expectation formation mechanisms than in traditional models, and (b) to demonstrate that this might change the assessment of policy effectiveness. Two illustrative examples for monetary and fiscal policies are presented with different levels of rationality and differences in the expectation formation process.

Keywords: Agent-based economics; Mulit-agent models; monetary policy; fiscal policy; expectation formation (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (15) Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/jbnst.2008.228.is ... 2-308.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

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: https://EconPapers.repec.org/RePEc:jns:jbstat:v:228:y:2008:i:2-3:p:276-295

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/jbnst

Access Statistics for this article

Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) is currently edited by Peter Winker

More articles in Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik) from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2018-08-20
Handle: RePEc:jns:jbstat:v:228:y:2008:i:2-3:p:276-295