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Domenico Delli Gatti is Economics Professor at Catholic University, Milan, where he received his PhD in 1987. He has been a visiting scholar at Washington University in Saint Louis, University of Cambridge, Massachusetts Institute of Technology, Stanford University, New School for Social Research, University of California in Santa Cruz, Santa Fe Institute, Columbia University.

His research interests focus on the role of financial factors (firms’ and banks’ financial fragility) in business fluctuations, a field he started exploring in collaboration with Hyman Minsky, revisited in a new light due to the research work carried out with Joe Stiglitz and Bruce Greenwald.

Recently he has devoted his research effort to two areas of research. The first one concerns the properties of “financial accelerator” multi-agent models. Together with Mauro Gallegati he has developed one of the few agent-based macroeconomic models in circulation, presented in his most recent book Macroeconomics from the Bottom Up (with E. Gaffeo, M. Gallegati, S. Desiderio, P. Cirillo). Previously he published Emergent Macroeconomics (with E. Gaffeo, M. Gallegati, G.Giulioni, A. Palestrini).

The second area concerns the properties of networks of borrowing-lending relationships. Two recent papers are “Default Cascades: When Does Risk Diversification Increase Stability?” (with S. Battiston, M. Gallegati, B. Greenwald, J. Stiglitz), revised and resubmitted to the Journal of Financial Stability, and “Liaisons Dangereuses: Increasing Connectivity, Risk Sharing and Systemic Risk” (with S. Battiston, M. Gallegati, B. Greenwald, J. Stiglitz), revised and resubmitted to the Journal of Economic Dynamics and Control).

By this expert

Financial Instability after Minsky:Heterogeneity, Agent Based Models and Credit Networks

Paper Conference paper | | Apr 2012

Albeit the majority of the profession either ignores Minskyís Financial Instability Hypothesis (FIH) or considers it plainly wrong, at least since the mid-80’s a few influential economists —who have certainly not embraced any unorthodoxcredo —have grown more receptive to this idea and eager to incorporate it in their models, even if diluted and sometimes disguised in order to make it more palatable to the conventional “representative” macroeconomist

Featuring this expert

Microfoundations for the Vision of Minsky

Video | Jun 12, 2011

Delli Gatti starts where his dissertation advisor, Hyman Minsky, left off.