Interactions between the real economy and the stock market: a simple agent-based approach
type: Item
instance of: scholarly article
title: Interactions between the real economy and the stock market: a simple agent-based approach
zbMATH Open document ID: 1248.91071
DOI: 10.1155/2012/504840
published in: Discrete Dynamics in Nature and Society
publication date: 2012-10-19T00:00:00Z
review text: Summary: We develop a simple behavioral macromodel to study interactions between the real economy and the stock market. The real economy is represented by a Keynesian-type goods market approach while the setup for the stock market includes heterogeneous speculators. Using a mixture of analytical and numerical tools we find, for instance, that speculators may create endogenous boom-bust dynamics in the stock market which, by spilling over into the real economy, can cause lasting fluctuations in economic activity. However, fluctuations in economic activity may, by shaping the firms' fundamental values, also have an impact on the dynamics of the stock market.
Mathematics Subject Classification ID: 91B76
Mathematics Subject Classification ID: 91B84
Mathematics Subject Classification ID: 91B69
zbMATH DE Number: 6096231
zbMATH Keywords: behavioral macromodels
Wikidata QID: Q58700604
author: Frank Westerhoff
describes a project that uses: DMC
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2012/504840
OpenAlex ID: W2053619580
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description: scientific article; zbMATH DE number 6096231