CLE Seminar: Andrea Teglio

Friday, 23 January 2026, 12 p.m.

Room G.122 – Lombardo

Andrea TEGLIO, Università Ca’ Foscari

The importance of being many: dynamics, interaction and aggregation in a multi-sector economy

(Co-authored with Marco Nieddu and Marco Raberto)

Abstract: This study develops a family of models to evaluate how agent heterogeneity and interactions shape macroeconomic dynamics, challenging the adequacy of representative agent frameworks. Building on dynamic multi-sector models populated by boundedly rational firms and households, we conduct both analytical and computational comparisons between aggregated and disaggregated representations across equilibrium and disequilibrium regimes. We identify precise conditions-individual and relational indistinguishability-under which representative constructs successfully replicate multi-agent dynamics, and we demonstrate their failure in constrained regimes where rationing-induced network shocks generate irreversible structural changes. The analysis reveals that aggregation errors escalate with heterogeneity, asymmetric interactions, and shock-driven reconfigurations of economic networks, critically undermining policy inferences. The proposed family of multi-agent models, grounded in minimal realistic principles, allows us to systematically quantify the errors derived by treating the response to exogenous shocks as a dynamic sequence of equilibria, rather than explicitly accounting for out-of-equilibrium dynamics. These insights bridge Keynesian coordination failures with modern complexity economics, offering methodological rigor to address Blanchard's critique on the relevance of interactions for macroeconomic modeling.