When complexity meets finance: A contribution to the study of the macroeconomic effects of complex financial systems
comunitat-uji-handle:10234/9
comunitat-uji-handle2:10234/8643
comunitat-uji-handle3:10234/8644
comunitat-uji-handle4:
INVESTIGACIONMetadatos
Título
When complexity meets finance: A contribution to the study of the macroeconomic effects of complex financial systemsFecha de publicación
2020Editor
ElsevierISSN
0048-7333; 1873-7625Cita bibliográfica
BOTTA, Alberto; CAVERZASI, Eugenio; RUSSO, Alberto. When complexity meets finance: a contribution to the study of the macroeconomic effects of complex financial systems. Research Policy, 2020, p. 103990Tipo de documento
info:eu-repo/semantics/articleVersión de la editorial
https://www.sciencedirect.com/science/article/abs/pii/S0048733320300706#!Versión
info:eu-repo/semantics/submittedVersionPalabras clave / Materias
Resumen
In the last decade, complexity economics has emerged as a powerful approach to the understanding of
the most relevant factors influencing economic development. The concept of economic complexity has
been applied ... [+]
In the last decade, complexity economics has emerged as a powerful approach to the understanding of
the most relevant factors influencing economic development. The concept of economic complexity has
been applied to the study of different economic issues such as economic growth, technological change
and inequality. With this work we aim at extending the application of this concept to the study of the
financial side of the economy, and, in particular, of the macroeconomic effects of rising financial
complexity. In this paper, we present an agent-based model integrating an increasingly complex
financial sector with a real side of the economy populated, among other sectors, by heterogeneous
households. We test the systemic impact that the increasing complexity of both the financial system and
the financial products it manufactures bear on economic growth, macroeconomic stability and
inequality. We find mixed results with respect to the positive economic implications the existing
literature ascribes to products complexity and deepening production capabilities. Despite higher
financial complexity may lead to faster growth, our model suggests that this comes at the cost of
heightened financial fragility, a more crisis-prone economic system, and increasing levels of income and
wealth inequality. According to these findings, and consistently with pioneering insights from Minsky,
we claim that rising complexity does not always entail positive consequences for the well-being of the
economy. This is particularly true when it comes to financial innovations and financial complexity. [-]
Publicado en
Research Policy, 2020, p. 103990Derechos de acceso
http://rightsstatements.org/vocab/CNE/1.0/
info:eu-repo/semantics/openAccess
info:eu-repo/semantics/openAccess
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