Unemployment benefits and financial leverage in an agent based macroeconomic model

Luca Ricetti, Alberto Russo and Mauro Gallegati

Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), 2013, vol. 7, No 2013-42, 44 pages

Abstract: This paper is aimed at investigating the effects of government intervention through unemployment benefits on macroeconomic dynamics in an agent based decentralized matching framework. The major result is that the presence of such a public intervention in the economy stabilizes the aggregate demand and the financial conditions of the system at the cost of a modest increase of both the inflation rate and the ratio between public deficit and nominal GDP. The successful action of the public sector is sustained by the central bank which is committed to buy outstanding government securities.

Keywords: Agent based macroeconomics; business cycle; crisis; unemployment; leverage (search for similar items in EconPapers)
JEL-codes: C63 E32 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifweej:201342

DOI: 10.5018/economics-ejournal.ja.2013-42

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