Financial Instability and Agents' Heterogeneity: A Post Minskyan Research Agenda

Risultato della ricerca: Contributo in libroChapter

7 Citazioni (Scopus)

Abstract

In this paper we present a macroeconomic model in which changes in the variance (and higher moments of the distribution) of firm's financial conditions - i.e. "distributive shocks" - are bound to play a crucial role in the determination of output fluctuations. Firms heterogeneity is defined by the degree of financial robustness, which affects (optimal) investment in a bankruptcy risk context à la Greenwald-Stiglitz. Households, for the sake of simplicity, are homogeneous in every respect so that we can adopt the representative agent hypothesis. We explore the properties of the macro-dynamic model either via the study of the two-dimensional map defining the laws of motion of the average equity ratio and of the variance of the distribution or via simulations in a multiagent framework. We find that the way in which we conceive of fluctuations of the major macroeconomic variables is deeply affected by the explicit consideration of heterogeneity.
Lingua originaleEnglish
Titolo della pubblicazione ospiteThe Elgar Companion to Hyman Minsky
Pagine182-205
Numero di pagine24
Stato di pubblicazionePubblicato - 2010

Keywords

  • Financial instability
  • Heterogeneity

Fingerprint Entra nei temi di ricerca di 'Financial Instability and Agents' Heterogeneity: A Post Minskyan Research Agenda'. Insieme formano una fingerprint unica.

Cita questo