What is the reason why the firm has to pay the workers before employing them on machines?

35The firm has to pay the workers before employing them on machines because households refuse to work if they do not perceive a wage in the current period.

What are the parameters of the production cycle time and the average productivity of each machine?

In the current version of the model, the production cycle time and the average productivity of each machine are exogenous parameters.

Open AccessJournal Article10.2139/SSRN.2669488

Jamel, a Java Agent-based MacroEconomic Laboratory

Pascal Seppecher

- 14 May 2012

- Social Science Research Network

TL;DR: In this article, the authors present a computational macroeconomic model which closely associates Keynesian thinking and an agent-based approach, where agents are not representative agents or aggregates but autonomous individuals in direct and indirect interactions.

Abstract: This paper presents a computational macroeconomic model which closely associates Keynesian thinking and an agent-based approach. This model is original because we do not introduce any causality between macroeconomic variables. Instead of postulate macroeconomic properties, we want to understand them by the methodic reconstruction of the conditions of their emergence, starting from their most elementary foundations: the interactions between individual agents. This model is the model of a dynamic out-of-equilibrium economy composed of two principal sets of agents (firms and households) associated with two main functions (production and consumption). The agents are not representative agents or aggregates but autonomous individuals in direct and indirect interactions, each of them pursuing its own purposes, acting according to their individual state and their local environment, without worrying about the general equilibrium of the system and without any overriding control.

AI Agents for this Paper

Find similar papers on Google Scholar, PubMed and Arxiv
Write a critical review of this paper
Analyze citations of this paper to find unaddressed research gaps

Most frequently asked questions

1. According to Lavoie (2004, p. 44), all post-Keyne?

According to Lavoie (2004, p. 44), all post-Keynesian models are based upon the principle of prices determined by cost-plus pricing.

2. What is the role of stocks and inventories in the behavioral model?

In such behavioral models, stocks and inventories have a double role: they make it possible to absorb shocks and they measure the degree of disequilibrium the agent has to control.

3. What is the definition of accommodating in economics?

in an economy with endogenous money, the banking sector is usually considered as accommodating: because the willingness of firms to produce is at the origin of the money creation3, the disaggregation of the banking sector seems to be not essential to the study of macroeconomic dynamics of modeled economy.

4. What is the main advantage of using computer simulation as a tool in economics?

“The main advantage of using computer simulation as a tool in economics is to provide a concrete procedure for formulating and testing hypotheses.

Figure 2: Interaction diagram, real and monetary flows

Figure 1: Sequence diagram of monetary flows

Table 8: Normal (exogenous) values of the households sector

Table 5: Normal (exogenous) values of the firms sector

Table 6: Control variables of the firm i

Citations

•Journal Article•10.1111/JOES.12221

Stock-Flow Consistent Macroeconomic Models: A Survey

Michalis Nikiforos, +1 more

- 01 Dec 2017

- Journal of Economic Surveys

TL;DR: The stock-flow consistent (SFC) approach has been adopted by a growing number of researchers in macroeconomics, especially after the publication of Monetary Economics by Godley and Lavoie, which provided a general framework for the analysis of whole economic systems, and the recognition that macroeconomic models integrating real markets with flow-of-funds analysis had particularly successful in predicting the Great Recession of 2007-2009 as mentioned in this paper.

...read moreread less

151

•Posted Content

Is the market really a good teacher

Pascal Seppecher, +2 more

- 20 Oct 2016

- Research Papers in Economics

TL;DR: In this paper, the authors propose to model market mechanisms as a collective learning process for firms in a complex adaptive system, namely Jamel, an agent-based, stock-flow consistent macroeconomic model.

...read moreread less

•Journal Article•10.4000/REGULATION.10977

Pour une macroéconomie monétaire dynamique et complexe

Pascal Seppecher

- 10 Dec 2014

TL;DR: In this paper, the authors decrivons the construction of a modele d'economie monetaire reellement dynamique, peuple d'agents multiples, autonomes and heterogenes en interaction directe and decentralisee, tout en respectant rigoureusement the coherence des stocks and des flux.

...read moreread less

•Posted Content

Is the Market Really a Good Teacher? Market Selection, Collective Adaptation and Financial Instability

Pascal Seppecher, +2 more

- 01 May 2016

- Research Papers in Economics

TL;DR: In this article, the authors propose to model market mechanisms as a collective learning process for firms in a complex adaptive system, namely Jamel, an agent-based, stock-flow consistent macroeconomic model.

...read moreread less

•Posted Content

Simulator and scenario for "Is the Market Really a Good Teacher? Market Selection, Collective Adaptation and Financial Instability"

Pascal Seppecher, +1 more

- 09 May 2016

- Research Papers in Economics

TL;DR: Jamel as mentioned in this paper is an agent-based framework for modeling, simulation and analysis of complex monetary economies, which is used in the paper "Is the market really a good teacher? Market selection, collective adaptation and financial instability" by Pascal Seppecher, Isabelle Salle and Dany Lang.

...read moreread less

References

•Book

A Behavioral Theory of the Firm

Richard M. Cyert, +1 more

- 01 Jan 1963

TL;DR: In this paper, the authors present an overview of basic concepts in the Behavioral Theory of the Firm, and present a specific price and output model for a specific type of products. But they do not discuss the relationship between the two concepts.

...read moreread less

12.9K

Journal Article•10.2307/2325604

Exit, voice, and loyalty : responses to decline in firms, organizations, and states

Albert O. Hirschman

- 01 Dec 1970

- Journal of Finance

TL;DR: Zimbardo et al. as discussed by the authors studied the effects of severity of initiation and high penalties for exiting from public goods (and evils) on consumer reactions to price rise and quality decline in the case of several connoisseur goods.

...read moreread less

10.3K

Journal Article•10.2307/2283171

A Behavioral Theory of the Firm.

Martin Shubik, +2 more

- 01 Mar 1965

- Journal of the American Statistical Asso...

8.2K

Journal Article•10.2307/3005748

Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States

C. Ray Wingrove, +1 more

- 01 Mar 1971

- Social Forces

TL;DR: Hirschman as discussed by the authors discusses the responses to decline in firms, organizations, and states by Albert O. Hirschman, while in residence at the Center for Advanced Studies in the Behavioral Sciences at Stanford University.

...read moreread less

7.2K

•Journal Article•10.1002/(SICI)1099-0526(199905/06)4:5<41::AID-CPLX9>3.0.CO;2-F

Agent-based computational models and generative social science

Joshua M. Epstein, +1 more

- 01 May 1999

- Complexity

TL;DR: It is argued that the agent-based computational model permits a distinctive approach to social science for which the term “generative” is suitable, and the connection between agent- based modeling and classical emergentism is taken up, criticizing the latter and arguing that the two are incompatible.

...read moreread less

1.1K

...

Expand

Jamel, a Java Agent-based MacroEconomic Laboratory

Chat with Paper

AI Agents for this Paper

Most frequently asked questions

1. According to Lavoie (2004, p. 44), all post-Keyne?

2. What is the role of stocks and inventories in the behavioral model?

3. What is the definition of accommodating in economics?

4. What is the main advantage of using computer simulation as a tool in economics?

5. What is the reason why the firm has to pay the workers before employing them on machines?

6. What are the parameters of the production cycle time and the average productivity of each machine?

Figures

Citations

Stock-Flow Consistent Macroeconomic Models: A Survey

Is the market really a good teacher

Pour une macroéconomie monétaire dynamique et complexe

Is the Market Really a Good Teacher? Market Selection, Collective Adaptation and Financial Instability

Simulator and scenario for "Is the Market Really a Good Teacher? Market Selection, Collective Adaptation and Financial Instability"

References

A Behavioral Theory of the Firm

Exit, voice, and loyalty : responses to decline in firms, organizations, and states

A Behavioral Theory of the Firm.

Exit, Voice, and Loyalty: Responses to Decline in Firms, Organizations, and States

Agent-based computational models and generative social science

Related Papers (5)

Jamel, a Java Agent-based MacroEconomic Laboratory

Agent-based model of economy

Multi-agent based modelling of an endogenous-money economy

Market dynamics and agents behaviors: a computational approach

E Many Pluribus Unum: A Behavioural Macro-Economic Agent Based Model