Agent-Based Model Approach to Complex Phenomena in Real Economy

An agent-based model for firms' dynamics is developed. The model consists offirm agents with identical characteristic parameters and a bank agent. Dynamicsof those agents is described by their balance sheets. Each firm tries tomaximize its expected profit with possible risks in market. Infinite growth ofa firm directed by the "profit maximization" principle is suppressed by aconcept of "going concern". Possibility of bankruptcy of firms is alsointroduced by incorporating a retardation effect of information on firms'decision. The firms, mutually interacting through the monopolistic bank, becomeheterogeneous in the course of temporal evolution. Statistical properties offirms' dynamics obtained by simulations based on the model are discussed inlight of observations in the real economy.