This paper studies an agent-based model that bridges Keynesian theories of demandgeneration and Schumpeterian theories of technology-fueled economic growth. We employ the model to investigate the properties of macroeconomic dynamics and the impact of public polices on supply, demand and the fundamentals of the economy. We find that the complementarities between factors influencing aggregate demand and drivers of technological change affect both short-run fluctuations and long-term growth patterns. From a normative point of view, simulations show a corresponding complementarity between Keynesian and Schumpeterian policies in sustaining long-run growth paths characterized by mild fluctuations and acceptable unemployment levels. The matching or mismatching between innovative exploration of new technologies and the conditions of demand generation appear to suggest the presence of two distinct regimes of growth (or absence thereof) characterized by different short-run fluctuations and unemployment levels.
Endogenous Growth Business Cycles Growth Policies Business CyclePolicies Evolutionary Economics Agent-Based Computational Economics Post-Walrasian Economics Empirical Validation Monte-Carlo Simulations