Income distribution, productivity growth, and workers’ bargaining power in an agent-based macroeconomic model

A Mathematical Model for the Dynamics of Income Distribution in the Presence of Production

“…Finally, we want to mention a few recent contributions on the relationship between economic growth and income distribution, belonging to economic literature [17][18][19]. In particular, the frst of these three works provides a review with an extensive bibliography on the subject and shows that, at least in the economic literature, related research keeps being lively.…”

Essays on the pricing behavior of firms using an agent-based modeling approach

“…Generally, these models assume that prices are fully flexible, and any marginal changes in costs or demand are passed on to final consumers in each period, or they incorporate some form of time-dependent pricing. Only in Rolim et al (2023) do we find a mechanism where the pass-through is incomplete. In some models, the frequency of the price adjustment is exogenously imposed.…”

“…Furthermore, the pricing equations do not account for any asym-metry in the pricing strategies identified in pricing surveys, where certain information may be more important depending on its signal. We also did not incorporate the possibility that firms incorporate the dynamics of the unitary cost of production in the markups, as was done in Rolim et al (2023). Despite these limitations, the model provides robust empirical evidence for the persistent heterogeneity in firms' pricing strategies and their correlation with the business cycle.…”

“…In Rolim et al (2023Rolim et al ( , 2022, firms also adopt a cost-based pricing routine, applying a markup factor over the normal unitary cost of production. The prices are flexible, and firms face variable production costs.…”

“…In our model, the decision-making process for production follows a standard model commonly used in ABMs. The output of firms producing consumption goods is determined by their expectations of future demand and their production capacity (Possas et al, 2001;Caiani et al, 2016;Dawid et al, 2019;Rolim et al, 2022;Oliveira et al, 2020). Following Dosi et al (2020), expectations of demand are formed based on observing the past and extrapolating it to the future.…”