In this paper we take the first step of a project aimed at assessing Minsky’s Financial Instability Hypothesis. Differently from a number of existing studies, our aim is to tackle the issue by combining two approaches: experimental and computational economics. The main goal of this paper is in fact to build artificial agents whose behavior mimic that of experimental agents. Two are the results worth to be mentioned. First, the heuristic approach could provide for a valid alternative micro-foundation for the financial decisions of entrepreneurs. Secondly, financial behaviors could mainly depend on the volatility of demand and on the accuracy of demand forecasts instead of depending on the business cycle phases as usually pointed out by models inspired by Minsky’s economic thought.
Exploring firms financial decisions by human and artificial agents. Towards an Assessment of Minsky's Financial Instability Hypothesis
GIULIONI, Gianfranco;BUCCIARELLI, EDGARDO;SILVESTRI, MARCELLO
2012-01-01
Abstract
In this paper we take the first step of a project aimed at assessing Minsky’s Financial Instability Hypothesis. Differently from a number of existing studies, our aim is to tackle the issue by combining two approaches: experimental and computational economics. The main goal of this paper is in fact to build artificial agents whose behavior mimic that of experimental agents. Two are the results worth to be mentioned. First, the heuristic approach could provide for a valid alternative micro-foundation for the financial decisions of entrepreneurs. Secondly, financial behaviors could mainly depend on the volatility of demand and on the accuracy of demand forecasts instead of depending on the business cycle phases as usually pointed out by models inspired by Minsky’s economic thought.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
