Journal of Economic Interaction and Coordination

, Volume 10, Issue 2, pp 305–332 | Cite as

An agent based decentralized matching macroeconomic model

  • Luca Riccetti
  • Alberto RussoEmail author
  • Mauro Gallegati
Regular Article


In this paper we present a macroeconomic microfounded framework with heterogeneous agents—individuals, firms, banks—which interact through a decentralized matching process presenting common features across four markets—goods, labor, credit and deposit. We study the dynamics of the model by means of computer simulation. Some macroeconomic properties emerge such as endogenous business cycles, nominal GDP growth, unemployment rate fluctuations, the Phillips curve, leverage cycles and credit constraints, bank defaults and financial instability, and the importance of government as an acyclical sector which stabilize the economy. The model highlights that even extended crises can endogenously emerge. In these cases, the system may remain trapped in a large unemployment status, without the possibility to quickly recover unless an exogenous intervention takes place.


Agent-based macroeconomics Business cycle Crisis  Unemployment Leverage 

JEL Classification

E32 C63 



We are very grateful to participants at the following conferences for helpful comments and suggestions: 17th Annual Workshop on Economic Heterogeneous Interacting Agents (WEHIA), University of Pantheon-Assas, Paris II, June 21–23, 2012; 18th International Conference Computing in Economics and Finance (CEF), Prague, June 27–29, 2012; Systemic Risk: Economists meet Neuroscientists, Frankfurt Institute for Advanced Studies (FIAS) and the House of Finance, Frankfurt am Main, September 17–18, 2012; 3rd International Workshop on Managing Financial Instability in Capitalist Economies (MAFIN), Genoa, September 19–21, 2012. We want to thank two anonymous referees for insightful comments and useful suggestions. Authors acknowledge the financial support from the European Community Seventh Framework Programme (FP7/2007–2013) under Socio-economic Sciences and Humanities, grant agreement no. 255987 (FOC-II).


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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Sapienza Università di RomaRomeItaly
  2. 2.Department of Economics and Social SciencesUniversità Politecnica delle MarcheAnconaItaly

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