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Behavioral Macroeconomics and Agent-Based Macroeconomics

  • Shu-Heng ChenEmail author
  • Umberto Gostoli
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 290)

Abstract

In this article, we review the recent development of the agent-based macroeconomic models (ABMMs) using the skeleton of behavioral macroeconomics as proposed by George Akerlof. Based on the 15 models surveyed in this paper, we find that most behavioral elements addressed by Akerlof have not been well incorporated into the ABMMs. The only element which has been successfully well applied is the decision heuristics (rule-of-thumb behavior). We discuss the fundamental difficulties which cause the current deviations and highlight the expected efforts to meet the gap.

Keywords

Agent-Based Macroeconomic Models Behavioral Macroeconomics Asymmetric Information Social Preferences Rule of Thumbs Wage Rigidity Hyperbolic Discounting 

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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  1. 1.AI-ECON Research Center, Department of EconomicsNational Chengchi UniversityTaipeiTaiwan

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