Economics with Heterogeneous Interacting Agents

A Practical Guide to Agent-Based Modeling

  • Alessandro Caiani
  • Alberto Russo
  • Antonio Palestrini
  • Mauro Gallegati

Part of the New Economic Windows book series (NEW)

Table of contents

  1. Front Matter
    Pages i-xviii
  2. Ermanno Catullo, Antonio Palestrini, Gabriele Tedeschi
    Pages 1-28
  3. Leonardo Bargigli, Alessandro Caiani, Luca Riccetti, Alberto Russo
    Pages 29-102
  4. Ruggero Grilli, Gabriele Tedeschi
    Pages 103-155
  5. Back Matter
    Pages 191-205

About this book


This book offers a practical guide to Agent Based economic modeling, adopting a “learning by doing” approach to help the reader master the fundamental tools needed to create and analyze Agent Based models. After providing them with a basic “toolkit” for Agent Based modeling, it present and discusses didactic models of real financial and economic systems in detail. 

While stressing the main features and advantages of the bottom-up perspective inherent to this approach, the book also highlights the logic and practical steps that characterize the model building procedure. A detailed description of the underlying codes, developed using R and C, is also provided. In addition, each didactic model is accompanied by exercises and applications designed to promote active learning on the part of the reader. Following the same approach, the book also presents several complementary tools required for the analysis and validation of the models, such as sensitivity experiments, calibration exercises, economic network and statistical distributions analysis.

By the end of the book, the reader will have gained a deeper understanding of the Agent Based methodology and be prepared to use the fundamental techniques required to start developing their own economic models.

Accordingly, “Economics with Heterogeneous Interacting Agents” will be of particular interest to graduate and postgraduate students, as well as to academic institutions and lecturers interested in including an overview of the AB approach to economic modeling in their courses.


Agent-based Economics Business Fluctuations Economic Networks Analysis Financial Market Modeling Modeling Financial Markets Non-Walrasian Tradition

Editors and affiliations

  • Alessandro Caiani
    • 1
  • Alberto Russo
    • 2
  • Antonio Palestrini
    • 3
  • Mauro Gallegati
    • 4
  1. 1.Università Politecnica delle Marche AnconaItaly
  2. 2.Università Politecnica delle Marche AnconaItaly
  3. 3.Università Politecnica delle Marche AnconaItaly
  4. 4.Università Politecnica delle Marche AnconaItaly

Bibliographic information

Industry Sectors
Finance, Business & Banking