Abstract
The purpose of the paper is to study fluctuations in a fragile economy, where the role of debt and income distribution is considered. It is based upon a macro approach that emphasizes interactions between market processes and macro constraints within an uncertain environment. By utilizing a regime switching approach, where behavioural functions change when a threshold is violated, robust dynamics can be generated. The model can mimic some aspects of the present evolution of the world economy by means of simulations.
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Ferri, P. Income distribution and debts in a fragile economy: market processes and macro constraints. J Econ Interact Coord 8, 219–230 (2013). https://doi.org/10.1007/s11403-012-0091-8
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DOI: https://doi.org/10.1007/s11403-012-0091-8