Economic growth and individual satisfaction in an agent-based economy

Joaquim Silvestre, Tanya Araújo and Miguel Aubyn ()

No 2016/19, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: Macro and micro-economic perspectives are combined in an economic growth model. An agent-based modeling approach is used to develop an overlapping generation framework where endogenous growth is supported by workers that decide to study depending on their relative (skilled and unskilled) indi- vidual satisfaction. The micro perspective is based on individual satisfaction: an utility function computed from the variation of the relative income in both space and time. The macro perspective emerges from micro decisions, and, as in other growth models of this type, concerns an important allocative social decision the share of the working population that is engaged in producing ideas (skilled workers). Simulations show that production and satisfaction levels are higher when the evolution of income measured in both space and time are equally weighted. Key Words : agent modeling, education, heterogeneous human capital, economic growth, individual satisfaction.

Date: 2016-09
New Economics Papers: this item is included in nep-cmp, nep-gro, nep-hme and nep-upt
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