Period Analysis of Multiplier in Agent-Based Models

In this paper, we present an agent-based model to verify the multiplier theory in macroeconomics and make an extension in the research of realization time of multiplier. We employ a simple model in which agents exchange money with each other and the multiplier effect is an emerging phenomenon of individual transactions. The model assumes that agents' expenditures would depend on their wealth and income. From equality of aggregate income with expenditure at macroscopic level, we can get the expression of multiplier. Then we analyzed theoretically and numerically the dynamic properties of the multiplier process, and obtained the expression of realization time.