scholarly journals Fixed Investments and Macroeconomic Agent-Based Modeling

2021 ◽  
Vol 21 (1) ◽  
pp. 5-28
Author(s):  
Alexander A. Tsyplakov ◽  
Larisa V. Melnikova
Keyword(s):  
Technical Progress ◽  
Investment Decisions ◽  
Cash Flows ◽  
Input Output ◽  
Agent Based ◽  
Economic Agents ◽  
Agent Interaction ◽  
Investment In Fixed Assets ◽  
Investment Process

The significant progress observed in the field of artificial economy opens up new possibilities for modeling economic growth. Agent-based models (ABM) allow leaving the concept of a representative agent in the past and linking investment decisions of economic agents at the micro level with long-term macroeconomic growth. Modern ABMs offer new algorithms for modeling expectations, agent interaction, technical progress, pricing, and production planning. Our article analyzes the current state of modeling investment in fixed assets in operating macroeconomic ABMs. The subject of the review is the families of models Eurace, CATS, KS, Jamel, Lagom. The authors also present the investment block of the agent-based multiregional input-output model (ABMIOM) being developed. Comparative analysis demonstrates that modern ABMs, as a rule, implement the principle of stock-flow consistency. Modeling the investment process requires detailing the commodity nomenclature, so that the initially adopted two-sector division into investment and consumer goods is replaced by more detailed structures, which gives rise to the problem of accounting for inter-sectoral relations in production and consumption. The Leontief production function copes with this problem, which is confirmed by its widespread use in ABM. The size of firms' investments is often derived from the need to expand capacity in accordance with the current production plan, so that planning turns out to be myopic, and long-term aspects in ABM are still largely unrealized. Nevertheless, already now ABMs reproduce many phenomena associated with the economic cycle. The developed ABMIOM provides horizontal consistency of cash flows between agents and analysis of results using input-output tables. ABMIOM represents a step forward in reflecting intersectoral and interregional flows. The model reproduces the growth and contraction of the economy as a result of independent investment decisions of individual firms and households, which is reflected in the sectoral and spatial structure of the economy. Further development of ABMIOM is associated with the modeling of savings, intrafirm finance, money market, innovation and technical progress.

Long-term Macroeconomic Dynamics of Competition in the Russian Economy using Agent- based Modelling

2017 ◽  
Vol 6 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Tatyana Eftonova ◽  
Mariam Kiran ◽  
Mike Stannett
Keyword(s):  
Dynamic Behaviour ◽  
Economic Modelling ◽  
Macroeconomic Dynamics ◽  
Agent Based ◽  
Economic Agents ◽  
Agent Based Modelling ◽  
Russian Economy ◽  
Modelling Techniques ◽  
Modelling Approach

Agent-based economic modelling techniques are increasingly being used to complement standard economic simulations. This paper re-models a standard equation-based simulation model of the Russian macroeconomy in an agent-based setup, and uses it to investigate the effect that antimonopoly legislation can be expected to have upon long-term dynamic behaviour. The results reveal various potential outcomes which would have not been visible using traditional equation-based modelling techniques. While the number of economic agents has been kept deliberately small in the work presented here, the modelling approach is scalable to systems incorporating many millions of agents.

It is essentially acknowledged that discounted cash flows should always be calculated by management when making long-term investment decisions. Why is this so?

2021 ◽  
Vol 9 (3) ◽  
pp. 84-98
Author(s):  
Francis Kwadade-Cudjoe
Keyword(s):  
Competitive Advantage ◽  
Competitive Strategy ◽  
Investment Decisions ◽  
Cash Flows ◽  
Venture Capitalists ◽  
Cheap Labour ◽  
Fixed Assets ◽  
Goals And Objectives

Investment is sacrifices made now / future in anticipation of upcoming benefits. Long-term investment is the act of using money to acquire items, normally fixed assets, and is a pre-requisite for any modern organization to have them. Organizations are looking for capital to expand their frontiers to capture cheap labour for manufacturing their products, i.e. globalization. The struggle for survival of organizations, therefore hinge precariously on the ability of the enterprise to successfully invest in long-term debts, and managing the resource judiciously to thrive. However, banks and venture capitalists are not ready to contract loans to organizations not competitive. Moreover, the surge of covid-19 pandemic has made the situation dire, as there is no particular haven to fall on. In view of this, discounting the cash flows generated from business activities is perfectly right to accurately account for success of organizations. Non-discounting cash flows generated from business activities is not rigorous to properly account for success of organizations. In addition, the competitive strategy adopted by the organization is vital to enable management achieve its goals and objectives, and subsequently attain competitive advantage. Furthermore, it is paramount for the organization’s competitive advantage so achieved to be sustainable.

ANALISIS EFEKTIVITAS JALUR EKSPEKTASI INFLASI DALAM MEKANISME TRANSMISI KEBIJAKAN MONETER DI INDONESIA: PENDEKATAN VECTOR AUTOREGRESSIVE (VAR)

2020 ◽  
Vol 1 (2) ◽  
Author(s):  
Nurita Hutagalung
Keyword(s):  
Monetary Policy ◽  
Investment Decisions ◽  
The Other ◽  
Inflation Expectations ◽  
Vector Autoregressive ◽  
Economic Agents ◽  
Random Shocks

Inflation expectations to be one of the main runway most economic agents in setting prices and wages, which in turn affect consumption and investment decisions. In relation to the aim of research is to look at the effectiveness of the path of inflation expectations by analyzing random kejutatan (shock) and the contribution of each variable to changes in another variable. The results of this study concluded that (1) all give each variable a random shocks to the other variables so as to achieve long-term equilibrium. This is shown by the results of the estimated IRF test on each variable, (2) all the variables together contribute to other variables as shown by the results of estimation VD test. From the estimation of inflation expectations can be concluded that monetary policy affects inflation.

scholarly journals Skin Stem Cell Hypotheses and Long Term Clone Survival – Explored Using Agent-based Modelling

2013 ◽  
Vol 3 (1) ◽  
Author(s):  
X. Li ◽  
A. K. Upadhyay ◽  
A. J. Bullock ◽  
T. Dicolandrea ◽  
J. Xu ◽  
...  
Keyword(s):  
Stem Cell ◽  
Agent Based ◽  
Agent Based Modelling

Where Did All the Dollars Go? The Effect of Cash Flows on Capital and Asset Structure

2011 ◽  
Vol 46 (5) ◽  
pp. 1259-1294 ◽  
Author(s):  
Sudipto Dasgupta ◽  
Thomas H. Noe ◽  
Zhen Wang
Keyword(s):  
Cash Flow ◽  
Economic Effect ◽  
Balance Sheet ◽  
Cash Flows ◽  
Long Run ◽  
Goods Market ◽  
Short Run ◽  
Debt Market ◽  
Short And Long Term

AbstractThis paper documents the short- and long-term balance sheet effect of cash flows. We show that cash savings in the short run and debt reduction in both the short and the long run account for a substantial fraction of cash flow use. Although, in the long run, investment exhibits substantial sensitivity to cash flows, investment does not absorb the entire cash flow shock. In fact, the tighter the financial constraints, the smaller the fraction of cash flow absorbed by investment and the more by leverage reduction. Firms stage their response to increases in cash flow, delaying investment while building up cash stocks and reducing leverage. These results suggest that much of the short-run economic effect of cash flow shocks to the corporate sector may be channeled into the corporate debt market rather than the capital goods market, especially when financing constraints tighten.

scholarly journals A GENETIC APPROACH FOR LONG TERM VIRTUAL ORGANIZATION DISTRIBUTION

2011 ◽  
Vol 20 (02) ◽  
pp. 271-295 ◽  
Author(s):  
VÍCTOR SÁNCHEZ-ANGUIX ◽  
SOLEDAD VALERO ◽  
ANA GARCÍA-FORNES
Keyword(s):  
Genetic Algorithm ◽  
Virtual Organization ◽  
Genetic Material ◽  
Multi Agent System ◽  
Crossover Operator ◽  
Agent Based ◽  
Multi Agent ◽  
Global Goal ◽  
Computational Resources

An agent-based Virtual Organization is a complex entity where dynamic collections of agents agree to share resources in order to accomplish a global goal or offer a complex service. An important problem for the performance of the Virtual Organization is the distribution of the agents across the computational resources. The final distribution should provide a good load balancing for the organization. In this article, a genetic algorithm is applied to calculate a proper distribution across hosts in an agent-based Virtual Organization. Additionally, an abstract multi-agent system architecture which provides infrastructure for Virtual Organization distribution is introduced. The developed genetic solution employs an elitist crossover operator where one of the children inherits the most promising genetic material from the parents with higher probability. In order to validate the genetic proposal, the designed genetic algorithm has been successfully compared to several heuristics in different scenarios.

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