This paper is aimed at investigating the effects of government intervention through unemployment benefits on macroeconomic dynamics in an agent based decentralized matching framework. The major result is that the presence of such a public intervention in the economy stabilizes the aggregate demand and the financial conditions of the system at the cost of a modest increase of both the inflation rate and the ratio between public deficit and nominal GDP. The successful action of the public sector is sustained by the central bank which is committed to buy outstanding government securities.
Unemployment Benefits and Financial Leverage in an Agent Based Macroeconomic Model / Riccetti, Luca; Russo, Alberto; Gallegati, Mauro. - In: ECONOMICS. - ISSN 1864-6042. - ELETTRONICO. - 7:2013-42(2013), pp. 1-44. [10.5018/economics-ejournal.ja.2013-42]
Unemployment Benefits and Financial Leverage in an Agent Based Macroeconomic Model
RICCETTI, LUCA;RUSSO, Alberto;GALLEGATI, Mauro
2013-01-01
Abstract
This paper is aimed at investigating the effects of government intervention through unemployment benefits on macroeconomic dynamics in an agent based decentralized matching framework. The major result is that the presence of such a public intervention in the economy stabilizes the aggregate demand and the financial conditions of the system at the cost of a modest increase of both the inflation rate and the ratio between public deficit and nominal GDP. The successful action of the public sector is sustained by the central bank which is committed to buy outstanding government securities.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.