Our aim is to analyse the interplay between growing inequality and financial fragility in a complex macroeconomic system. In order to do this, we propose a macroeconomic microfounded framework with heterogeneous agents in which households, firms, and banks interact according to decentralised matching processes. The main result is that growing inequality leads to more macroeconomic volatility, increasing the likelihood of observing large unemployment crises.
Growing Inequality, Financial Fragility, and Macroeconomic Dynamics: An Agent Based Model / Russo, Alberto; Riccetti, Luca; Gallegati, Mauro. - ELETTRONICO. - 229:(2013), pp. 167-176. [10.1007/978-3-642-39829-2_15]
Growing Inequality, Financial Fragility, and Macroeconomic Dynamics: An Agent Based Model
RUSSO, Alberto;RICCETTI, LUCA;GALLEGATI, Mauro
2013-01-01
Abstract
Our aim is to analyse the interplay between growing inequality and financial fragility in a complex macroeconomic system. In order to do this, we propose a macroeconomic microfounded framework with heterogeneous agents in which households, firms, and banks interact according to decentralised matching processes. The main result is that growing inequality leads to more macroeconomic volatility, increasing the likelihood of observing large unemployment crises.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.