Tesi etd-05252026-171738
Link copiato negli appunti
Tipo di tesi
Corso Ordinario Secondo Livello
Autore
D'ELIA, GIOVANNI
URN
etd-05252026-171738
Titolo
Price Setting, Inflation and Income Distribution: an Agent-Based Inquiry on Mark-up Dynamics and Conflict
Struttura
Classe Scienze Sociali
Corso di studi
SCIENZE ECONOMICHE E MANAGERIALI - SCIENZE ECONOMICHE E MANAGERIALI
Relatori
tutor Prof. TAMAGNI, FEDERICO
relatore Prof. ROVENTINI, ANDREA
relatore Prof. ROVENTINI, ANDREA
Parole chiave
- Price Setting
- Sellers' Inflation
- Income Distribution
- Agent-based Model
Data inizio appello
15/06/2026;
Disponibilità
completa
Riassunto analitico
The introduction of micro-founded price-setting behaviour into the existing K+S agent-based model makes it possible to investigate the macroeconomic consequences of administered pricing across the business cycle and during inflationary surges. In particular, the implementation of staggered price adjustment and downward nominal rigidity generates dynamics that favour firms’ profitability, significantly affecting both the functional distribution of income and the resilience of the economy in standard Monte Carlo simulations.
The introduction of an energy shock, increasing production costs for consumption-good firms, provides a framework to analyse how these pricing mechanisms shape the evolution of inflationary episodes and their broader macroeconomic effects. Sellers’ inflation — modelled as a positive dependence of firms’ desired mark-up on past inflation once inflation exceeds given thresholds — increases the persistence of inflationary dynamics and substantially alters the adjustment path of income distribution.
Because of staggered pricing and nominal rigidities, firms are initially unable to fully pass higher costs onto prices. As a result, the burden of the shock falls simultaneously on profit margins and real wages. Over time, however, the evolution of income distribution depends on the relative ability of wages and profits to reclaim their shares of income. Stronger wage indexation limits the recovery of profit margins, leading to a more even distribution of the costs of higher energy prices between labour and capital. Conversely, stronger sellers’ inflation allows firms not only to restore profitability, but also to raise profit margins above their pre-shock levels. This exacerbates the disruptive effects of the energy shock on the economy, as the resulting compression of real wages weakens aggregate demand and slows macroeconomic recovery.
The introduction of an energy shock, increasing production costs for consumption-good firms, provides a framework to analyse how these pricing mechanisms shape the evolution of inflationary episodes and their broader macroeconomic effects. Sellers’ inflation — modelled as a positive dependence of firms’ desired mark-up on past inflation once inflation exceeds given thresholds — increases the persistence of inflationary dynamics and substantially alters the adjustment path of income distribution.
Because of staggered pricing and nominal rigidities, firms are initially unable to fully pass higher costs onto prices. As a result, the burden of the shock falls simultaneously on profit margins and real wages. Over time, however, the evolution of income distribution depends on the relative ability of wages and profits to reclaim their shares of income. Stronger wage indexation limits the recovery of profit margins, leading to a more even distribution of the costs of higher energy prices between labour and capital. Conversely, stronger sellers’ inflation allows firms not only to restore profitability, but also to raise profit margins above their pre-shock levels. This exacerbates the disruptive effects of the energy shock on the economy, as the resulting compression of real wages weakens aggregate demand and slows macroeconomic recovery.
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