A multi-agent growth model based on the von Neumann-Leontief framework

Wu Li ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper presents a discrete-time growth model to describe the dynamics of a multi-agent economy, and the model consists of production process, exchange process, price and technology adjustment processes etc. Technologies of agents in each period are represented by a technology matrix pair, and some properties of Perron-Frobenius eigenvalues and eigenvectors of technology matrix pairs are discussed. An exchange model is also developed to serve as the exchange part of the growth model. And equilibrium paths of the growth model are proved to be balanced growth paths sharing a unique normalized price vector. Though this paper focuses mainly on the case of n agents and n goods, the growth model can also deal with the case of m agents and n goods. A numerical example with 6 agents and 4 goods is given, which describes the dynamics of a two-country economy and has endogenous price fluctuations and business cycles.

Keywords: von Neumann’s expanding economic model; input-output model; dynamic general equilibrium; disequilibrium; multi-country economic model (search for similar items in EconPapers)
JEL-codes: B51 C02 C67 C68 D5 D51 D58 E32 F1 F43 O41 (search for similar items in EconPapers)
Date: 2008-08-08
New Economics Papers: this item is included in nep-mac and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:11302

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