A Multi-Agent Policy Toolkit
WORKING PAPER
(1.74 MB)
This paper presents a computational model, emphasizing feedback effects and the heterogeneity of agents in situations of large economic shocks.
We show in the framework of a stock-flow consistent, spatio-temporal dynamic micro simulation that large economic shocks can have negative effects on distribution and that these futhermore can exhibit some hysteresis. In particular, we find thta income inequality worsens in the medium run after shock, while consumption inequality increases in the short run.