Domenico Delli Gatti, Giorgio Fagiolo, Mauro Gallegati, Matteo Richiardi and Alberto Russo (eds): Agent-Based Models in Economics: A Toolkit
- 1 Downloads
In the years after the financial meltdown of 2007, economists were wringing their hands about how they failed to predict both the crisis and the subsequent Great Recession (Colander et al. 2014). In the immediate aftermath, there were calls for new methodological approaches to macroeconomics (Farmer and Foley 2009; Krugman 2009). And, after a period of debate and discussion, the question of the appropriate methodology has, once again, subsided. For the most part, economists have returned to their standard workhorse of New Keynesian stochastic general equilibrium models (DSGE) (Galí 2018).
But for those looking to understand alternative modeling methods, Agent-Based Models in Economics: A Toolkit, offers an excellent introduction on how to incorporate heterogeneous agents and institutions, networks, and learning into macroeconomic models.
Agent-based modeling (ABM), as a set of tools, has been around in some form or another since at least the...
- Dawid, H., and D.D. Gatti. 2018. Chapter 2: Agent-based Macroeconomics. In Handbook of Computational Economics, vol. 4, ed. Cars Hommes and Black LeBaron. Amsterdam: Elsevier North-Holland.Google Scholar
- Dieci, R., and X.-Z. He. 2018. Chapter 5: Heterogeneous Agent Models in Finance. In Handbook of Computational Economics, vol. 4, ed. Cars Hommes and Black LeBaron. Amsterdam: Elsevier North-Holland.Google Scholar
- Krugman, P. 2009. How Did Economists Get it So Wrong? New York Times, September 6. https://www.nytimes.com/2009/09/06/magazine/06Economic-t.html.
- Nelson, R.R., and Sidney G. Winter. 1982. An Evolutionary Theory of Economic Change. Cambridge: Belknap Press.Google Scholar
- Schelling, T. 1978. Micromotives and Macrobehavior. New York: WW Norton & Company.Google Scholar
- Simon, H.A. 1969. The Sciences of the Artificial. 1st ed. Cambridge: MIT Press.Google Scholar