2003/12/03 by Domenico Delli Gatti, Corrado Di Guilmi, Gatti, Domenico Delli +9
Economics, Econometrics and Finance · Physics and Astronomy · #Complex Network Analysis Techniques #Complex Systems and Time Series Analysis #Condensed Matter (cond-mat) #FOS: Physical sciences #Opinion Dynamics and Social Influence #cond-mat
paper · pdf · doi:10.48550/arxiv.cond-mat/0312096
35 pages. Accepted by "Journal of Economic Behaviour and Organisation"
arxiv created 2003/12/03 · openalex publication_date 2003/12/03 · arxiv updated 2009/12/01 · openalex created_date 2022/10/06 · openalex updated_date 2026/07/28
In this paper we discuss a scaling approach to business fluctuations. Our starting point consists in recognizing that concepts and methods derived from physics have allowed economists to (re)discover a set of stylized facts which have to be satisfactorily accounted for in their models. Standard macroeconomics, based on a reductionist approach centered on the representative agent, is definitely badly equipped for this task. On the contrary, we show that a simple financial fragility agent-based model, based on complex interactions of heterogeneous agents, is able to replicate a large number of scaling type stylized facts with a remarkable high degree of statistical precision.