Regensburg 2016 – scientific programme

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SOE: Fachverband Physik sozio-ökonomischer Systeme

SOE 13: Economic Models I

SOE 13.4: Talk

Wednesday, March 9, 2016, 11:00–11:15, H36

Agent-Based Post-Keynesian Stock-Flow Consistent Models in Continuous Time — •Oliver Richters — International Economics, Carl von Ossietzky University Oldenburg

General Constrained Dynamic Models (GCDM) have been proposed as a meta theory of economic models. This contribution studies the capacities of this approach to reproduce Stock-Flow Consistent (SFC) models widely used in Post-Keynesian Economics. SFC models are usually formulated in discrete time and their proponents underline the necessity to model monetary stocks and flows and their accounting identities consistently. The latter constrain the dynamics of the model economy.

The SFC approach is transformed into continuous time dynamics and respecting accounting identities leads to dynamics under constraints similar to Newtonian mechanics. Some adaptions of existing SFC models are presented.

The formalism allows to study these models mit methods of Lagrangian mechanics that are also widely used in other fields of economics, but not yet in the Post-Keynesian school of thought.