In this paper we investigate the relationship between firm-specific investor sentiment, measured by applying text analysis to news stories published by Thomson Reuters, and merger and acquisition (M&A) deals announced by US-listed companies between 1997 and 2018. We find that a more positive...

This paper explores the interconnections among foreign term spreads across different economies and their systemic implications on crisis vulnerability. The term spread, understood as the difference between long‐term and short‐term interest rates on Treasury securities, has a well‐known...

This paper considers a tax evasion game where the tax authority intends to prevent income under-reporting within a network of heterogeneous taxpayers who are engaged in social interactions and exchange information. I propose a two-step game-theoretic optimal audit strategy from the point of view...

Using a simple agent-based stock-flow consistent (AB-SFC) framework, this paper presents a fully formalised version of the two-price model of capital investment which forms an important but relatively neglected component of Hyman Minsky's Financial Instability Hypothesis. The model presented in...

Bringing existing inequality in South Africa (high) and Switzerland (low) to the lab, we study how people's preferences for redistribution change with the level of income inequality, income mobility, uncertainty of initial income positions, source of income (random or based on real-effort). We...

This paper uses a macroeconomic agent-based model building on Delli Gatti et al. (2011) to investigate the influence of agents' expectations and consumption choices on government expenditure multipliers. Following a thorough investigation of the size of the multiplier in the pre-existing...

This paper incorporates endogenously emerging beliefs, with an emphasis on the role of social influence, into a stylized Islands model, characterized by uncertainty and strategic complementarity generating frictional coordination. In particular, individuals can have pessimistic, neutral or...

An Agent-Based Model (ABM) accounting for tax-morale and loss-aversion was implemented over different network systems with social interactions at the local level to study the phenomenon of tax evasion. This ABM is an innovative model which integrates endogenous characteristics of heterogeneous...

We provide a first study of the threshold model, where both conformist and anti-conformist agents coexist. The paper is in the line of a previous work by the first author (Grabisch et al., 2018), whose results will be used at some point in the present paper. Our study bears essentially in...

We present a simple stock-flow consistent (SFC) model to discuss some recent claims made by Angel Asensio in the Journal of Post Keynesian Economics regarding the relationship between endogenous money theory and the liquidity preference theory of the rate of interest. We incorporate Asensio's...