Income inequality, consumer debt, and prudential regulation: An agent-based approach to study the emergence of crises and financial instability

D’Orazio, Paola

doi:10.1016/j.econmod.2019.01.015

Cited by 13 publications

(2 citation statements)

References 78 publications

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“…The capacity of ABMs to investigate hypothetical conditions such as those resulting from potential‐but‐never‐applied policies has resulted in wide adoption of this methodology by scholars investigating the effects of potential policies (see e.g. Bleda & Valente, 2009; D’Orazio, 2019; Biondo et al., 2020) or analyzing complex or one‐off events for which traditional approaches cannot be used due to lack of sufficient data (e.g. Di Maio & Valente, 2013; Samitas et al., 2018).…”

Section: Introductionmentioning

confidence: 99%

Public procurement and reputation. An agent‐based model

Fiorino,

Galli,

Rizzo

et al. 2023

Metroeconomica

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This paper uses an agent‐based computational model to investigate whether and how considering the firm's reputation in the public procurement selection process affects the expected final contract cost. We take account of different sets of simulations and a range of model parameters (such as firm skills, level of opportunistic rebate, relative weights of reputation and rebate) and propose a reputation index based on the cost overruns recorded by winning firms at the conclusion of their contracts. We show that this index allows the awarding authority to (i) select the most efficient and the least opportunistic firms, and (ii) to exclude firms that engage in frequent opportunistic behavior whose reputation has declined. Our results suggest that reputation matters, and we derive some implications for policy.

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Section: Introductionmentioning

confidence: 99%

Public procurement and reputation. An agent‐based model

Fiorino,

Galli,

Rizzo

et al. 2023

Metroeconomica

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“…The indebtedness rate is a problematic issue nowadays, especially for low-income consumers, who are the most exposed to it (D'Orazio, 2019). This negative situation is further aggravated in emerging markets, where high interest rates apply to consumer credit (Abrantes-Braga and Veludo-de-Oliveira, 2020).…”

Section: Introductionmentioning

confidence: 99%

Regulatory focus and construal level theory on low-income consumer indebtedness: Evidence from an emerging market

Campos

Costa

2021

IJOEM

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PurposeThis study aims to further analyse the decision-making process of low-income consumer from an emerging market by verifying the influence of regulatory focus and construal level theory on indebtedness.Design/methodology/approachAn experimental study was carried out with a design 2 (regulatory focus: promotion vs prevention) × 2 (psychological distance: high vs low) between subjects, with 140 low-income consumers.FindingsOur study points out that the propensity towards indebtedness of low-income consumer is higher in a distal psychological distance. We found that promotion and prevention groups have the same propensity to indebtedness. Moreover, we highlight that low-income consumers are prone to propensity to indebtedness due to taking decisions focused on the present with an abstract mindset.Social implicationsFinancial awareness advertisements should focus on providing more concrete strategies in order to reduce decision-making complexity and provide ways to reduce competing situations that could deplete self-regulation resources. Also, public policy should organize educational programs to increase the low-income consumer's ability to deal with personal finances and reduce this task complexity. Finally, educational financial programs should also incorporate psychology professionals to teach mindfulness techniques applied to financial planning.Originality/valueThis study is the first to consider regulatory focus and construal level to explain low-income indebtedness. This paper provides a deeper analysis of the low-income consumers' decision process. Also, it supports and guides future academic and decision-making efforts.

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Banking Stability and Prudential Regulation Interactions in DSGE Model for Tunisia

Mansour

Salem

2021

The Importance of New Technologies and Entrepreneurship in Business Development: In the Context of Economic Diversity in Develo

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Since the last financial crisis, the financial system has taken and continues to be on guard against these unexpected shocks. In this direction, this article focused with these decision-makers as well as his researchers on a more advanced macroeconomic modeling, based on the integration of different hazards (economic, social, cultural, environmental…), the concept of micro-foundations, of the different types of imperfect competition accompanied by some price rigidities. We are proposing a new Dynamic Stochastic General Equilibrium (DSGE) model tailored to the banking sector in Tunisia. Our model captures the role played by prudential regulations in correcting fluctuations in the business cycle and restoring macroeconomic and financial stability.

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Income inequality, consumer debt, and prudential regulation: An agent-based approach to study the emergence of crises and financial instability

Cited by 13 publications

References 78 publications

Public procurement and reputation. An agent‐based model

Public procurement and reputation. An agent‐based model

Regulatory focus and construal level theory on low-income consumer indebtedness: Evidence from an emerging market

Banking Stability and Prudential Regulation Interactions in DSGE Model for Tunisia

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