Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/60227 
Year of Publication: 
2012
Citation: 
[Journal:] Economics: The Open-Access, Open-Assessment E-Journal [ISSN:] 1864-6042 [Volume:] 6 [Issue:] 2012-27 [Publisher:] Kiel Institute for the World Economy (IfW) [Place:] Kiel [Year:] 2012 [Pages:] 1-49
Publisher: 
Kiel Institute for the World Economy (IfW), Kiel
Abstract: 
The recent financial crises pointed out the central role of public and private debt in modern economies. However, even if debt is a recurring topic in discussions about the current economic situation, economic modeling does not take into account debt as one of the crucial determinants of economic dynamics. The authors' contribution, in this paper, is to investigate the issues of borrowing and debt load by means of computational experiments, performed in the environment of the agent-based Eurace simulator. The authors aim to shed some light on the relation between debt and main economic indicators. Their results clearly confirm that the amount of credit in the economy is a very important variable, which can affect economic performance in a twofold way: fostering growth or pushing the economy into recession or crisis. The outcomes of their computational experiments show a rich scenario of interactions between real and financial variables in the economy, and therefore represent a truly innovative tool for the study of economics.
Subjects: 
agent-based computational economics
debt
leverage
credit money
economic crisis
JEL: 
E2
E3
E44
E51
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

Files in This Item:
File
Size
912.09 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.