The agent-based structural approach in infrastructure for economic growth

Abstract

The recent development of the EU exhibits the challenge of large infrastructure investments intended to eliminate disparities among the EU Member states. The Structural Funds and the Cohesion Funds form together one of the largest parts of the European Union’s budget. This paper is aimed to carry out the applicable theoretical methods for the infrastructure development policy, which provide the conventional methods describing the random behavior of the heterogeneous economic agents, the changing structure of entire markets and the institutions, considering the influence the heteroscedasticity of the global processes beyond and within the EU and provide the mechanism to link intertwined cross-border components with high degree of freedom into a system. The agents are continuously adjusting their behavior in the dynamically changing environments through generation of new patterns of behavior and raised complexity of the interactions. The argued method based on agent-based macroeconomic model, which differs from the common dynamic stochastic general equilibrium approaches.