OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
A new firm-level model of corporate sector interactions and fragility: The Corporate Agent-Based (CAB) model
This paper develops a new large-scale firm-level simulation model, the Corporate Sector Agent-Based (CAB) Model, which is applied to analyse the COVID-19 shock and policy options in Barnes, Hillman, MacDonald and Wharf (2021). Agent-based models (ABMs) simulate the interaction of autonomous agents to generate emergent aggregate behaviours. The CAB model takes into account: heterogeneity across firms; a realistic customer-supplier network; interactions between firms; rule-of-thumb behaviour by firms and bankruptcy constraints.
Keywords: short-time working schemes, input-output analysis, firm dynamics, network analysis, Covid-19, agent-based modelling, bankruptcy, credit guarantees, firm-level data, financial stability
JEL:
D21: Microeconomics / Production and Organizations / Firm Behavior: Theory;
G33: Financial Economics / Corporate Finance and Governance / Bankruptcy; Liquidation;
D85: Microeconomics / Information, Knowledge, and Uncertainty / Network Formation and Analysis: Theory;
D57: Microeconomics / General Equilibrium and Disequilibrium / General Equilibrium and Disequilibrium: Input-Output Tables and Analysis;
D22: Microeconomics / Production and Organizations / Firm Behavior: Empirical Analysis;
E27: Macroeconomics and Monetary Economics / Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy / Macroeconomics: Consumption, Saving, Production, Employment, and Investment: Forecasting and Simulation: Models and Applications
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