A Multisectoral Micro-Macrodynamic Model

Abstract

This is a simulation model that intends to integrate macro dynamics with structural and sectoral features that shape and modify it. It is an attempt to analyze the macrodynamic effective demand effects of endogenous structural changes in the same setup. Micro-macro interactions result in the model from each level having its own dynamics dependent on the inputs it receives from the others. Each sector is modeled according to neo-Schumpeterian evolutionary microfoundations, with additional unorthodox micro behavioral assumptions. Together with exogenous foreign and government sectors, they are integrated into a multisectoral model. The main features of the model are: (1) simulated sectoral trajectories of a stylized economy derive from endogenous competitive dynamics as well as direct (input-output) and indirect (income, consumption) interactions; (2) sectors are distinguished according to their role in the productive structure and demand categories – consumption, intermediate and capital; (3) no equilibrium is assumed: dynamic interactions among firms’ decisions (based on adaptive expectations) and their effects generate open-ended trajectories. Even though the simulation results presented in this paper only give a very brief idea of the trajectories generated by the model, a general robust result is obtained: the cyclical behavior of the GDP and its main aggregate components.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 12 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.