The nexus between debt and inequality has attracted considerable scholarly attention in the wake of the global financial crisis. One prominent candidate to explain the striking co-evolution of income inequality and private debt in this period has been the theory of upward-looking consumption...

We study how income inequality affects monetary policy through the inequality-household debt channel. We design a minimal macro Agent-Based model that replicates several stylized facts, including two novel ones: falling aggregate saving rate and decreasing bankruptcies during the household's...

In this paper, we report the findings of a randomized experiment designed to test whether the order of play in two Trust Games influences the observed level of trust displayed by Trustors (as measured by the share of endowment sent to Trustees). Playing Trustor in the second game increases the...

Linking decision systems, negotiating agents, management accounting, and computational accounting, this paper aims at exploring dynamic pricing strategies of a synthetic business-to-consumer online operation and a comparative analysis of evolving strategy-specific pricing optimization. Five...

Drawing on the labour-augmented K+S agent-based model, this paper develops a two-country North-South ABM wherein the leader and the laggard country interact through the international trade of capital goods. The model aims to address sources of asymmetries and possible converge patterns between...

The paper presents the cutting-edge approaches to economic expectations that originate in the field of computational intelligence. Firstly, the AI-based expectation concepts are situated within the long-standing debate about expectation formation in economics. They are discussed as a middle way...

Using a refined version of the multi-country AB-SFC model of a Monetary Union already presented in Caiani et al. (2018a, 2019) the paper aims at providing a tentative assessment of the economic effects of transforming the European Monetary Union into an Intergovernmental Fiscal Transfer Union...

Improvements in energy efficiency can help facing the on-going climate and energy crises, yet the energy intensity of economic activities at the global level in recent years has decreased more slowly than it is required to achieve climate goals. Based on this premise, the paper builds a...

We present Causal ABM, a methodology to derive causal structures describing complex underlying behavioral phenomena. Agent-based models (ABMs) have powerful advantages for causal modeling that have not been explored sufficiently. Unlike traditional causal estimation approaches which often result...

As Machine Learning (ML) systems are becoming increasingly used and more complex, different value systems are being coded into Artificial Intelligence (AI). In this paper, we delineate the value systems that many AI systems hold and suggest alternative value frameworks to combat inequities...

In this study, we explore the dynamics of the stock market using an agent-based simulation platform. Our approach involves creating a multi-strategy market where each agent considers both fundamental and technical factors when determining their strategy. The agents vary in their approach to...

Drawing on the labour-augmented K+S agent-based model, this paper develops a two-country North-South ABM wherein the leader and the laggard country interact through the international trade of capital goods. The model aims to address sources of asymmetries and possible converge patterns between...

We study the distributional consequences of COVID-19 by using a stock-flow consistent agent-based model that captures some of the aspects of pandemic-related lockdowns. In particular, the model distinguishes between "essential" and "non-essential" industries, between jobs that can be done from...

We develop an agent-based model for the euro area that fulfils widely recommended requirements for next-generation macroeconomic models by i) incorporating financial frictions, ii) relaxing the requirement of rational expectations, and iii) including heterogeneous agents. Using macroeconomic and...

One of the most intriguing recent development is in blockchain, which has the potential to make collaborative economies safer by securing transactions and contracts. This makes it one of the most exciting recent improvements in IoT. The use of smart contracts in an Internet of Things environment...

This paper develops a new multi-agent model to create a novel warning signal for equity investment, which well replicates actual stock and bond futures price dynamics through estimating fund flows of typical trading agents. Particularly, our model contains four types of agents taking equity/bond...

We investigate whether the fee income from trades on the CFM is sufficient for the liquidity providers to hedge away the exposure to market risk. We first analyse this problem through the lens of continuous-time financial mathematics and derive an upper bound for not-arbitrage fee income that...

We consider two data-driven approaches to hedging, Reinforcement Learning and Deep Trajectory-based Stochastic Optimal Control, under a stepwise mean-variance objective. We compare their performance for a European call option in the presence of transaction costs under discrete trading schedules....

In 2017 Robert Shiller, a Nobel Laureate, introduced Narrative Economics, an approach to explaining aspects of economies that are difficult to comprehend when analyzed using conventional methods: in light of narratives (i.e., stories) that participants in asset markets hear, believe, and tell...

Market failures, such as market power, externalities and imperfect information, have played a major role in economic theory. This article studies internalities, as others have done in the past, as agent failures. To do so, it considers economic agents with imperfect foresight, that face internal...

The Lux--Marchesi model has been modified to include hierarchical interactions to enable the examination of the effect of hierarchies on the formation of speculative bubbles. The Lux--Marchesi model includes two types of traders:~fundamentalists and chartists, with the latter classified as...

This paper develops an incomplete equilibrium model with multi-agents' different risk attitudes and heterogeneous income/payout profiles. Particularly, we apply its concrete and computationally tractable model to reinsurance derivatives pricing and life-cycle investment, which are important for...

Although climate-induced liquidity risks can cause significant disruptions and instabilities in the financial sector, they are frequently overlooked in current debates and policy discussions. This paper proposes a macro-financial agent-based integrated assessment model to investigate the...

We develop a generally applicable full‐information inference method for heterogeneous agent models, combining aggregate time series data and repeated cross‐sections of micro data. To handle unobserved aggregate state variables that affect cross‐sectional distributions, we compute a...

A key problem of construction firms’ management and economy is organization of effective participation in public tenders. The direct executor, who determines the price of the contract, may be interested in obtaining as many contracts as possible. It means that his strategic behavior in tender...

This study analyzes small-sized asset owners' optimal choice problems in selecting an outsourced chief investment officer (OCIO). While large-sized asset owners can select OCIOs through procurement auctions, it is difficult for small-sized asset owners to use this method. Instead, they access...

This paper explores the potential impacts of climate change and mitigation policies on the Euro Area, considering the uncertainty and heterogeneity in both climate and economic systems. Using the MATRIX model, a multi-sector and multi-agent macroeconomic model, we simulate various climate...

We study the impact of gender norms on the distribution of paid and unpaid labor between women and men in an intra-household bargaining model featuring endogenous social norms. In contrast to the previous literature, which assumes a homogeneous social norm, agents are connected via explicitly...

We develop an agent-based model for the euro area that fulfils widely recommended requirements for nextgeneration macroeconomic models by i) incorporating financial frictions, ii) relaxing the requirement of rational expectations, and iii) including heterogeneous agents. Using macroeconomic and...