Navigating energy price shocks - Mitigation strategies in an agent-based integrated assessment model
Work in progress
This paper relies on an agent-based model to simulate a temporary shock on fossil fuel prices in the European Union. It assesses its impact on functional income distribution, inflation persistence, and macroeconomic aggregates, considering: 1. firms’ capability to sustain profit margins, 2. households’ capacity to demand higher wages, and 3. diverse mitigation transfers established by the government.