Energy Shocks and Macroeconomic Stabilization Policies in an Agent-Based Macro Model
In this chapter we consider the effects of exogenous energy shocks on an agent-based macroeconomic system and study the out-of-equilibrium dynamics. We introduce automatic stabilizers that allow the artificial economy to absorbe the shocks. Two types of macroeconomic stabilization policies are implemented: a consumer subsidy scheme that compensates households for their loss in purchasing power, and a tax reduction scheme that affects both households and firms to support consumption and investments. Policy experiments are then carried out to evaluate the effectiveness of these macroeconomic policies. Finally, we are able to distinguish between short- and long-term effects of the policy measures.
KeywordsEnergy Crisis Stabilization Policy Benchmark Scenario Stabilization Scenario Energy Shock
This work was carried out in conjunction with the EURACE project (EU IST FP6 STREP grant 035086) which is a consortium lead by S. Cincotti (Università di Genova), H. Dawid (Universitaet Bielefeld), C. Deissenberg (Université de la Méditerranée), K. Erkan (TUBITAK National Research Institute of Electronics and Cryptology), M. Gallegati (Università Politecnica delle Marche), M. Holcombe (University of Sheffield), M. Marchesi (Università di Cagliari), C. Greenough (STFC—Rutherford Appleton Laboratory).
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