Schumpeter and Keynes: The Way Forward for the Macroeconomic Debate
Onder Nomaler, Alessandro Nuvolari, Bart Verspagen
Last modified: 2010-06-17
Abstract
This contribution will present the first sketch of an agent-based Keynesian economics model. The modeling structure is based on agent-based models from the Schumpeterian tradition. Traditionally, these models have focused on innovation, and its consequences for market structure and economic growth. Topics such as business cycles and unemployment, traditionally the domain of macroeconomics (Keynesian or not) have been neglected in these models. The paper starts with a brief recount of the exchange that Schumpeter and Keynes had in the 1930s. This will set the scene for a proposed modeling agenda that contains both Schumpeterian and Keynesian elements. Finally, some broad simulation results will be proposed in order to show the first outlines of a Keynes-Schumpeter agent-based model of business cycles.
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