In this work, we discuss how the rich academic milieu left by different Italian political economy traditions after WWII paved the way to the development of a new generation of macroeconomic agent-based models. The K+S (Dosi et al., 2010, 2016a), CATS (Delli Gatti et al., 2005, 2011) and EURACE (Cincotti et al., 2010; Teglio et al., 2012) families of agent-based models are at the frontier of an alternative macroeconomic research paradigm which considers the economy as a complex evolving system. The three families of models are presented in details and their empirical performance and policy exercises discussed.
Agent-Based Macroeconomics and Classical Political Economy: Some Italian Roots
Institute of Economics, Scuola Superiore Sant’Anna
Institute of Economics, Scuola Superiore Sant’Anna and OFCE, Sciences Po