EconPapers    
Economics at your fingertips  
 

Price Dynamics, financial fragility and aggregate volatility

Antoine Mandel, Simone Landini (), Mauro Gallegati and Herbert Gintis
Additional contact information
Simone Landini: Socioeconomic Research Institute of Piedmont - Socioeconomic Research Institute of Piedmont

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Within a standard framework à la Arrow-Debreu, we investigate the dynamics emerging from the interactions of heterogeneous households and firms that are adaptive price setters and financially constrained. We show that depending on the stringency of the financial constraints the model can settle in two very different regimes: one characterized by equilibrium, the other by disequilibrium and financial fragility. We then investigate how the structure of the production network affects the emergence of aggregate volatility from micro-level price and financial shocks, hence providing a dynamical counterpart to recent results of Acemoglu and al (2012).

Keywords: Agent-based modeling; financial fragility; price dynamics; general equilibrium; production networks; Modélisation multi-agents; fragilité financière; dynamique des prix; équilibre général (search for similar items in EconPapers)
Date: 2013-11
New Economics Papers: this item is included in nep-mac
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00917892v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Published in 2013

Downloads: (external link)
https://shs.hal.science/halshs-00917892v1/document (application/pdf)

Related works:
Journal Article: Price dynamics, financial fragility and aggregate volatility (2015) Downloads
Working Paper: Price dynamics, financial fragility and aggregate volatility (2015) Downloads
Working Paper: Price dynamics, financial fragility and aggregate volatility (2015) Downloads
Working Paper: Price dynamics, financial fragility and aggregate volatility (2015) Downloads
Working Paper: Price Dynamics, financial fragility and aggregate volatility (2013) Downloads
Working Paper: Price dynamics, financial fragility and aggregate volatility (2013) Downloads
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:hal:cesptp:halshs-00917892

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-22
Handle: RePEc:hal:cesptp:halshs-00917892