Should I stay or should I go? An agent-based setup for a trading and monetary union

Petrović, Marko; Ozel, Bulent; Teglio, Andrea; Raberto, Marco; Cincotti, Silvano

doi:10.1016/j.jedc.2020.103866

Cited by 10 publications

(17 citation statements)

References 59 publications

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“…The basic idea of this work is to convert the "current state of the art" Eurace model 1 , which is a single country model, into a versatile compound of open economies interacting in many potentially different ways, including by joining unions. One of the advantages of this incremental approach is the generality of the resulting model, which is not conceived to study a particular In the first work (Petrovic et al, 2018) where we have employed the model, summary of which has been given in Section 3.4, we study the macroeconomic implications of becoming part of a union, whose architecture is inspired from the EU, i.e, it includes international labor, goods and capital markets, along with a common currency. We start with a very simple and general case, where we compare the performance of two identical countries belonging to the union with two equivalent closed economies.…”

Section: Summary Of Resultsmentioning

confidence: 99%

“…This section summarizes the results of computational experiments that we have designed to study the macroeconomic implication of forming a union of countries. The details of model description including its validation, extensive analyses of results and discussions are presented in (Petrovic et al, 2018).…”

Section: Summary Of Resultsmentioning

confidence: 99%

“…The most prevalent methodological contribution that I have lead is within the multi-country simulation set-up that we have created for the analysis of monetary union models (Petrovic et al, 2018). The flexible and modular set-up enables us to conduct very complex yet controlled policy experiments.…”

Section: Overviewmentioning

confidence: 99%

“…In a similar manner, households can individually and endogenously decide the list of foreign labor markets to observe and to move to. 6 For the details of model specifications regarding export decisions at our first use case of the set up, see Section 2 in Petrovic et al (2018). A summary of firms' decision mechanism for that case is provided in Section 3.4.…”

Section: Housing Marketmentioning

confidence: 99%

“…The modular and scalable modelling design approach has enabled us to create control groups that are isolated closed economies. Figure 3.6 demonstrates the simulation set-up that is configured for the work in Petrovic et al (2018) and that is summarized and further discussed in this chapter. A horizontally scalable economy design enables us to create controlled experiment groups that can be configured and run parallel test groups.…”

Section: Experiments Set Up With Control Groupsmentioning

confidence: 99%

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Designing scalable and stock-flow-consistent agent-based models: Policy scenarios and experiments on housing markets, monetary unions and interbank networks

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Section: Summary Of Resultsmentioning

confidence: 99%

Section: Summary Of Resultsmentioning

confidence: 99%

Section: Overviewmentioning

confidence: 99%

Section: Housing Marketmentioning

confidence: 99%

Section: Experiments Set Up With Control Groupsmentioning

confidence: 99%

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Designing scalable and stock-flow-consistent agent-based models: Policy scenarios and experiments on housing markets, monetary unions and interbank networks

Ozel¹

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Labor and environment in global value chains: an evolutionary policy study with a three-sector and two-region agent-based macroeconomic model

2022

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The world economy crucially depends on multi-layered value chains with high degrees of sector-related specialization. Its final products are of international character and serve the needs and wants of the global citizen. However, many production processes are causing severe damage to the environment and moreover create health hazard for workers and local populations. This research article focuses on the increasing global unequal economic- and ecological exchange, fundamentally embedded in international trade. Resource extraction and labor conditions in the Global South as well as the implications for climate change originating from industry emissions in the North are investigated with an agent-based model. The model serves as a testbed for simulation experiments with evolutionary political economic policies. An international institution is introduced sanctioning the polluting extractivist sector in the Global South as well as the emitting industrial capital good producers in the North with the aim of subsidizing innovation reducing environmental and social impacts. Both regions are modelled as macroeconomic complex adaptive systems where international trade is restricted to a three-sector value chain, originating from mining resources in the South that are traded to capital good producers in the North crafting machinery which is eventually traded to consumer good firms, both in the North and South. The main outcome of the study is that sanctions alone are not effective in countering unequal exchange. They only make a difference in combination with subsidies for innovation activities, which are protecting labor and reducing local pollution in mines as well as reducing carbon-emissions in capital good production.

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Editorial to the special issue on applications of complexity for resilient organizations, management and innovation systems

Cincotti,

Giannoccaro,

Ponsiglione

et al. 2024

J Econ Interact Coord

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Welcome to the Special Issue on Applications of Complexity for Resilient Organizations, Management, and Innovation Systems. This Special Issue includes six articles highlighting how complexity science and complex systems approaches can be employed to study resilient aspects in organizations, management and innovation systems. Nowadays, governments, policy-makers, managers, firms, and organizations are requested to face challenges with possible and unpredictable disruptive events always more and more interconnected. Complexity science and complex systems approaches applied to economic and managerial systems allow to model the endogenous dynamics of a system as a whole and composed of heterogeneous interacting agents from the bottom up. Such models open the opportunity for a dynamic and systemic approach to investigate and improve the resilience of organizations and innovation systems. It is crucial to remark that both scholars and decision-makers collaborated on the Special Issue to better understand the advantages of using a systemic approach (i.e., complexity science and complex systems approaches) in areas where such methodologies have not been considered so far, i.e., organization, innovation, and management. To aid in this endeavor, the papers included in the Special Issue investigate different conceptual and methodological aspects applied in different contexts and open a new vista on the opportunity offered by complexity science and complex systems approaches to face research and professional questions in the areas of organization, management, and innovation.

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Should I stay or should I go? An agent-based setup for a trading and monetary union

Cited by 10 publications

References 59 publications

Designing scalable and stock-flow-consistent agent-based models: Policy scenarios and experiments on housing markets, monetary unions and interbank networks

Designing scalable and stock-flow-consistent agent-based models: Policy scenarios and experiments on housing markets, monetary unions and interbank networks

Labor and environment in global value chains: an evolutionary policy study with a three-sector and two-region agent-based macroeconomic model

Editorial to the special issue on applications of complexity for resilient organizations, management and innovation systems

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