Development and Underdevelopment in the History of Economic Thought

“Is there Cross-fertilization in macroeconomics? DSGE confronted to MABM models”

Dal Pont Legrand Muriel, Université Cote d'Azur CNRS GREDEG
Baccini Alberto, University of Siena
Martina Cioni, Siena University
Eugenio Petrovich, Siena University

Abstract. This paper proposes to examine the mutual influence between Macro-Agents Based Models (MABM) the Dynamic Stochastic General Equilibrium (DSGE) models research agenda. First, we identify the different topics investigated by the DSGE and MABM approaches and then determine whether there is convergence in their respective research agendas. To this end we adopt a distant-reading perspective. We considered a set of 2,253 papers retrieved from Scopus by using keywords related to MABM and DSGE domains. We build a similarity networks among papers and we individuate communities of similar papers. We show that the DSGE approach is less monolithic than at the time of the New Synthesis: indeed, a large and a growing literature has developed at the margins of the core DSGE approach which includes elements of heterogeneous agents modelling and social interactions, bounded rationality, macroeconomics experiments, expectations formation, learning etc.

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Keywords: dsge, mabm, crossfertilization,hybrid models, heterogenous interacting agents