 Hyman P. Minsky's unorthodox approach: recent advances in simulation techniques to develop his theoretical assumptionsEdgardo Bucciarelli and Marcello Silvestri Journal of Post Keynesian Economics, 2013, vol. 36, issue 2, 299-324 Abstract: This paper aims to contribute to the debate on the determinants of financial instability suggested by Hyman P. Minsky. In particular, we discuss the difficulties of analytically addressing his theory and the new scientific frontiers opened by agent-based modeling. Hyman Minsky's work is known as the reference point for several critical strands of standard economic theory. Through these strands, he tries to provide a "financial" interpretation of Keynes's General Theory. Minsky's main research findings converge into the financial instability hypothesis (FIH), according to which in a system based on capitalistic dynamics and characterized by growing and complex financial relations, the economy tends to move from a stable system to a frail one. What causes the economy to become more fragile is derived endogenously from inherent speculative behavior of a financial nature. However, it is not easy to formalize the FIH into a rigorous analytical model. In this regard, we present a survey of Minsky's unorthodox contribution and the recent development of simulation-agent-based models as a new research agenda that can help to model his FIH. Date: 2013 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mes:postke:v:36:y:2013:i:2:p:299-324 Ordering information: This journal article can be ordered from DOI: 10.2753/PKE0160-3477360206 Access Statistics for this article More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals |
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