Showing papers by "Kenneth Steiglitz published in 2008"
01 Jan 2008
TL;DR: In this paper, an agent-based model of a minimal economy containing households, retail banks, and producers of consumer and capital goods is presented, where household behavior is based on the buffer-stock savings model by Deaton (1961), while the profit-maximizing firms employ reinforcement learning to determine pricing and production.
Abstract: We present an agent-based model of a minimal economy containing households, retail banks, and producers of consumer and capital goods. Household behavior is based on the buffer-stock savings model by Deaton (1961), while the profit-maximizing firms employ reinforcement learning to determine pricing and production. Competitive retail banks facilitate the flow of funds between households and producers through a fractional-reserve system. Stability of the simulated markets depends only on the self-adjusting, boundedly rational behavior of the agents in the completely closed economic system.
14 citations