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

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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Labour Market Flexibility: More a Source of Macroeconomic Fragility than a Recipe for Growth

During the years of the recent European crisis (and also before), the economic policy debate has been marked by the need of labour market structural reforms to boost productivity and GDP growth. This rhetoric has been particularly vivid in the European Union, especially during the current Euro crisis. And the call for such reforms finds […]

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When more Flexibility Yields more Fragility: the Microfoundations of Keynesian Aggregate Unemployment

Wages are an element of cost crucially affecting the competitiveness of individual firms. But the wage bill is also a crucial element of aggregate demand. Hence it could be that more “flexible” and fluid labour markets, while allowing for faster inter-firm reallocation of labour, may also render the whole economic system more fragile, more prone […]

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