Conference Papers Year : 2010

Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money

Abstract

We present a model of a dynamic and complex economy in which the creation and the destruction of money result from interactions between multiple and heterogeneous agents. In the baseline scenario, we observe the stabilization of the income distribution between wages and profits. We then alter the model by increasing the flexibility of wages. This change leads to the formation of a deflationary spiral. Aggregate activity decreases and the unemployment increases. The macroeconomic stability of the model is affected and eventually a systemic crisis arises. Finally, we show that the introduction of a minimum wage would have allowed the aggregate demand to be boosted and to avoid this crisis.
Fichier principal
Vignette du fichier
Seppecher 2012 Flexibility of wages and macroeconomic instability.pdf (829) Télécharger le fichier
Origin Files produced by the author(s)
Loading...
HAL

Is version of halshs-00727050 Journal article Pascal Seppecher. Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money. Macroeconomic Dynamics, 2012, 16, pp.284-297. ⟨10.1017/S1365100511000447⟩. ⟨halshs-00727050⟩

Dates and versions

hal-00661956 , version 1 (21-01-2012)
hal-00661956 , version 2 (07-06-2017)

Identifiers

  • HAL Id : hal-00661956 , version 2

Cite

Pascal Seppecher. Flexibility of wages and macroeconomic instability in an agent-based computational model with endogenous money. Workshop on Economic Heterogeneous Interacting Agents ESHIA/WEHIA 2010, Jun 2010, Alessandria, Italy. ⟨hal-00661956v2⟩
504 View
965 Download

Share

More