Skills, Innovation, and Growth: An Agent-Based Policy Analysis

  title={Skills, Innovation, and Growth: An Agent-Based Policy Analysis},
  author={Herbert Dawid and Simon Gemkow and Philipp Harting and Kordian Kabus and Michael Neugart and Klaus Wersching},
  journal={Jahrb{\"u}cher f{\"u}r National{\"o}konomie und Statistik},
  pages={251 - 275}
Summary We develop an agent-based macroeconomic model featuring a distinct geographical dimension and heterogeneous workers with respect to skill types. The model, which will become part of a larger simulation platform for European policymaking (EURACE), allows us to conduct exante evaluations of a wide range of public policy measures and their interaction. In particular, we study the growth and labor market effects of various policy types that promote workers’ general skill levels. Using a… 

Figures and Tables from this paper

On the Effects of Skill Upgrading in the Presence of Spatial Labor Market Frictions: An Agent-Based Analysis of Spatial Policy Design

It is found that it depends on the level of spatial frictions on the labor market how the spatial distribution of policy measures aff ects the e ffects of the policy.

Mission-Oriented Policies and the “Entrepreneurial State” at Work: An Agent- Based Exploration

We study the impact of alternative innovation policies on the shortand long-run performance of the economy, as well as on public nances, extending the Schumpeter meeting Keynes agentbased model (Dosi

On the Effects of Skill Upgrading in the Presence of Spatial On the Effects of Skill Upgrading in the Presence of Spatial Labor Market Frictions: An Agent-Based Analysis of Spatial Labor Market Frictions: An Agent-Based Analysis of Spatial

Abstract We report results of economic policy experiments carried out in the framework of the EURACE agent-based macroeconomic model featuring a distinct geographical dimension and heterogeneous

The Inquiry of Labor Market Dynamics in Knowledge Economies: An Agent-Based Approach

An agent-based model is developed to simulate a labor market where firms post job offers to fill vacancies and decide how to choose and remunerate employees and allows evolutionary forces to “select” firms that best survive in a given scenario.

Labor market integration policies and the convergence of regions: the role of skills and technology diffusion

We study the role of different labor market integration policies on economic performance and convergence of two distinct regions in an agent-based model. Production is characterized by a

Fiscal Transfers and Regional Economic Growth

In the aftermath of the financial crisis, with periphery countries in the European Union even more falling behind the core countries economically, there have been quests for various kind of fiscal

Income Distribution, Credit and Fiscal Policies in an Agent-Based Keynesian Model

This work studies the interactions between income distribution and monetary and fiscal policies in terms of ensuing dynamics of macro variables (GDP growth, unemployment, etc.) on the grounds of an

The Eurace@Unibi Model: An Agent-Based Macroeconomic Model for Economic Policy Analysis

This document provides a description of the modeling assumptions and economic features of the Eurace@Unibi model. Furthermore, the document shows typical patterns of the output generated by this

What If Supply-Side Policies are Not Enough? The Perverse Interaction of Flexibility and Austerity

Abstract In this work we develop a set of labour market and fiscal policy experiments upon the labour- and credit- augmented “Schumpeter meeting Keynes” agent-based model. The labour market is

Agent-based models of the labor market

We review the literature on agent-based labor market models by tracing its roots to the microsimulation literature, and surveying a selection of contributions made since the work by Bergmann (1974)



Heterogeneity, competition, and macroeconomic dynamics

Collective learning, innovation and growth in a boundedly rational, evolutionary world

We formulate a simple multiagent evolutionary scheme as a model of collective learning, i.e. a situation in which firms experiment, interact, and learn from each other. This scheme is then applied to

An Evolutionary Model of Endogenous Business Cycles

In this paper, we present an evolutionary model of industry dynamics yielding endogenous business cycles with ‘Keynesian’ features. The model describes an economy composed of firms and

Matching, Bargaining, and Wage Setting in an Evolutionary Model of Labor Market and Output Dynamics

An agent-based, evolutionary, model of output- and labor-market dynamics that allows for a competitive process entailing selection of firms on the basis of their revealed competitiveness and generates sharp predictions about how system parameters affect aggregate performance and its volatility.

Labor Market Policy Evaluation with Ace

I develop an agent-based computational economics (ACE) model with which I evaluate the aggregate impact of labor market policies. The findings are that government-financed training measures increase

The Effects of Entry on Incumbent Innovation and Productivity

How does firm entry affect innovation incentives in incumbent firms? Microdata suggest that there is heterogeneity across industries. Specifically, incumbent productivity growth and patenting is

Empirical Validation of Agent-Based Models: Alternatives and Prospects

This paper addresses a set of methodological problems arising in the empirical validation of agent-based (AB) economics models and discusses how these are currently being tackled and gives rise to a novel taxonomy that captures the relevant dimensions along which AB modellers differ.

Whom Or What Does the Representative Individual Represent

Macroeconomic models often assume that the choices of all the diverse agents in one sector—consumers for example—can be considered as the choices of one "representative" standard utility maximizing

The Cyclicality of Mark-Ups and Profit Margins: Some Evidence for Manufacturing and Services

This paper uses industry and firm data to look at price cost mark-ups and firm profit margins in UK manufacturing and services. In particular it examines how they behave over the business cycle. It