Giovanni Dosi, Marcelo C. Pereira, Andrea Roventini and Maria Enrica Virgillito

Author Archive | Giovanni Dosi, Marcelo C. Pereira, Andrea Roventini and Maria Enrica Virgillito

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Causes and Consequences of Hysteresis: Aggregate Demand, Productivity and Employment

In this work we develop an agent-based model where hysteresis in major macroeconomic variables (e.g. GDP, productivity, unemployment) emerges out of the decentralized interactions of heterogeneous firms and workers. Building upon the model in Dosi et al. (2016, 2017), we specify an endogenous process of accumulation of workers’ skills and a state-dependent process of entry, […]

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working_paper_2017_02_cover

Inequality, Redistributive Policies and Multiplier Dynamics in an Agent-Based Model with Credit Rationing

We build an agent-based model populated by households with heterogeneous and time-varying financial conditions in order to study how different inequality shocks affect income dynamics and the effects of different types of fiscal policy responses. We show that inequality shocks generate persistent falls in aggregate income by increasing the fraction of credit-constrained households and by […]

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working_paper_2017_01_cover

The Janus-Faced Nature of Debt: Results from a Data-Driven Cointegrated SVAR Approach

In this paper, we investigate the causal effects of public and private debts on U.S. output dynamics. We estimate a battery of Cointegrated Structural Vector Autoregressive models, and we identify structural shocks by employing Independent Component Analysis, a data-driven technique which avoids ad-hoc identification choices. The econometric results suggest that the impact of debt on […]

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working_paper_2016_25_cover

Complexity and the Economics of Climate Change: a Survey and a Look Forward

We provide a survey of the micro and macro economics of climate change from a complexity science perspective and we discuss the challenges ahead for this line of research. We identify four areas of the literature where complex system models have already produced valuable insights: (i) coalition formation and climate negotiations, (ii) macroeconomic impacts of […]

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Preventing Environmental Disasters: Market-Based vs. Command-and-Control Policies

The paper compares the effects of market-based and command-and-control climate policies on the direction of technical change and the prevention of environmental disasters. Drawing on the model proposed in Acemoglu et al. (2012), we show that market-based policies (carbon taxes and subsidies towards clean sectors) exhibit bounded window of opportunities: delays in their implementation make […]

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The Effects of Labour Market Reforms upon Unemployment and Income Inequalities: an Agent Based Model

This paper is meant to analyse the effects of labour market structural reforms by means of an agent-based model. Building on Dosi et al. (2016b) we introduce a policy regime change characterized by a set of structural reforms on the labour market, keeping constant the structure of the capital- and consumption-good markets. Confirming a recent […]

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No Man Is an Island: The Impact of Heterogeneity and Local Interactions on Macroeconomic Dynamics

We develop an agent-based model in which heterogeneous firms and households interact in labor and good markets according to centralized or decentralized search and matching protocols. As the model has a deterministic backbone and a full-employment equilibrium, it can be directly compared to Dynamic Stochastic General Equilibrium (DSGE) models. We study the effects of negative […]

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Macroeconomic Regimes, Technological Shocks and Employment Dynamics

In this work, we investigate the interrelations among technology, output and employ- ment in the different states of the U.S. economy (recessions vs. expansions). More precisely, we estimate different threshold vector autoregression (TVAR) models with TFP, hours, and GDP, employing the latter as threshold variable, and we assess the ensuing generalized impulse responses of GDP […]

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