1. A basic New Keynesian DSGE model with dispersed information: An agent-based approach
- Author
-
Alessandro Gobbi and Jakob Grazzini
- Subjects
Agent-based models ,Flexibility (engineering) ,Organizational Behavior and Human Resource Management ,Economics and Econometrics ,050208 finance ,Exploit ,Process (engineering) ,05 social sciences ,Settore SECS-P/01 - ECONOMIA POLITICA ,Fiscal policy ,DSGE models ,Macroeconomic model ,0502 economics and business ,New Keynesian economics ,Economics ,Econometrics ,Dynamic stochastic general equilibrium ,050207 economics ,Macro - Abstract
The aim of this paper is to bridge macro agent-based models with mainstream macroeconomic models by agentifying the baseline New Keynesian DSGE model. The model features multiple, boundedly rational, optimizing agents and is analyzed through numerical simulations. We exploit the flexibility of agent-based modeling to explore the effect of dispersed information on the learning process and on macroeconomic outcomes. We find that with dispersed information monetary and fiscal policy acquire the role of public signals.
- Published
- 2019