2024/09 LEM Working Paper Series

The DSK-SFC stock-flow consistent agent-based integrated assessment model

Severin Reissl, Luca E. Fierro, Francesco Lamperti and Andrea Roventini
Climate change; Agent-based models; Integrated assessment

  JEL Classifications
E70, C63, Q50, Q54
We present an updated, stock-flow consistent version of the 'Dystopian Schumpeter meeting Keynes' agent-based integrated assessment model. By embedding the model in a fully specified accounting system, all balance sheet items and financial flows can be explicitly and consistently tracked throughout a simulation. This allows for an improved analysis of climate change and climate policy scenarios in terms of their systemic implications for agent and sector-level balance sheet dynamics and financial stability. We provide an extensive description of the updated model, representing the most detailed outline of a model from the well-established 'Keynes + Schumpeter' family available to date. Following a discussion of calibration and validation, we present a range of example scenarios.
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