Does fiscal policy matter? Tax, transfer, and spend in a macro ABM with capital and credit

Tiziana Assenza, Paola Colzani, Domenico Delli Gatti, Jakob Grazzini

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


We investigate, compare, and contrast the emerging properties of a macroeconomic agent-based model along the lines of Assenza et al., (2015, Journal of Economic Dynamics and Control, 50, 5–28) when the government experiments with different policy configurations: (i) tax and transfer; (ii) tax, transfer, and spend; and (iii) the implementation of a fiscal rule, such as a stylized Stability and Growth Pact. In some of the scenarios considered, a remarkable property can be detected, which we label the balanced budget emerging property: The scale of activity in the aggregate (GDP, employment, and unemployment rate) is such that a balanced budget emerges spontaneously. The strong implication of this property is that the fiscal authority is able to target GDP and the unemployment rate, a result reminiscent of the Blinder–Solow framework. It is worth noting, however, that there are many departures from the rule, which we have detected by carrying out the sensitivity analysis.
Original languageEnglish
Pages (from-to)N/A-N/A
JournalIndustrial and Corporate Change
Publication statusPublished - 2018


  • Agent-based models
  • Fiscal policy


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