EmbeDS and Institute of Economics
Scuola Superiore Sant'Anna
Piazza Martiri della Liberta', 33
56127 Pisa, Italy
Institutional Affiliations: Scuola Superiore Sant'Anna and OFCE, Sciences Po, Sophia-Antipolis, France
Information about this author at RePEc
NBER Working Papers and Publications
|April 2020||Rational Heuristics? Expectations and Behaviors in Evolving Economies with Heterogeneous Interacting Agents|
with Giovanni Dosi, Mauro Napoletano, Joseph E. Stiglitz, Tania Treibich: w26922
We analyze the individual and macroeconomic impacts of heterogeneous expectations and action rules within an agent-based model populated by heterogeneous, interacting firms. Agents have to cope with a complex evolving economy characterized by deep uncertainty resulting from technical change, imperfect information, coordination hurdles and structural breaks. In these circumstances, we find that neither individual nor macroeconomic dynamics improve when agents replace myopic expectations with less naïve learning rules. Our results suggest that fast and frugal robust heuristics may not be a second-best option but rather “rational” responses in complex and changing macroeconomic environments.
|January 2020||The Impact of Deunionization on the Growth and Dispersion of Productivity and Pay|
with Giovanni Dosi, Richard B. Freeman, Marcelo C. Pereira, Maria Enrica Virgillito: w26634
This paper presents an Agent-Based Model (ABM) that seeks to explain the concordance of sluggish growth of productivity and of real wages found in macro-economic statistics, and the increased dispersion of firm productivity and worker earnings found in micro level statistics in advanced economies at the turn of the 21st century. It shows that a single market process unleashed by the decline of unionization can account for both the macro and micro economic phenomena, and that deunionization can be modeled as an endogenous outcome of competition between high wage firms seeking to raise productive capacity and low productivity firms seeking to cut wages. The model highlights the antipodal competitive dynamics between a “winner-takes-all economy” in which corporate strategies focused on cost r...