FINNOV

Abstract: In this working paper we present a simple agent-based computational model, whose conceptual core is the interaction of heterogeneous firms, banks and workers on fully decentralized markets for final goods, labor and credit. The model is able to reproduce a large number of stylized facts concerning non-degenerate dynamics of the aggregate output (GDP) punctuated by sudden crises, emergent macroeconomic regularities, such as the Phillips curve, and right-skew distribution of firms’ sizes.