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On Complex Economic Dynamics: Agent-Based Computational Modeling and Beyond

  • Shu-Heng Chen
  • Ye-Rong Du
  • Ying-Fang Kao
  • Ragupathy Venkatachalam
  • Tina Yu
Conference paper
Part of the Springer Proceedings in Complexity book series (SPCOM)

Abstract

This chapter provides a selective overview of the recent progress in the study of complex adaptive systems. A large part of the review is attributed to agent-based computational economics (ACE). In this chapter, we review the frontier of ACE in light of three issues that have long been grappled with, namely financial markets, market processes, and macroeconomics. Regarding financial markets, we show how the research focus has shifted from trading strategies to trading institutions, and from human traders to robot traders; as to market processes, we empathetically point out the role of learning, information, and social networks in shaping market (trading) processes; finally, in relation to macroeconomics, we demonstrate how the competition among firms in innovation can affect the growth pattern. A minor part of the review is attributed to the recent econometric computing, and methodology-related developments which are pertinent to the study of complex adaptive systems.

Keywords

Financial markets Complexity thinking Agent-based computational economics Trading institutions Market processes 

Notes

Acknowledgements

The authors are grateful for the research support in the form of the Taiwan Ministry of Science and Technology grants, MOST 104-2916-I-004-001-Al, 103-2410-H-004-009-MY3, and MOST 104-2811-H-004-003.

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Copyright information

© Springer Nature Switzerland AG 2018

Authors and Affiliations

  • Shu-Heng Chen
    • 1
  • Ye-Rong Du
    • 2
  • Ying-Fang Kao
    • 1
  • Ragupathy Venkatachalam
    • 3
  • Tina Yu
    • 1
  1. 1.AI-ECON Research Center, Department of EconomicsNational Chengchi UniversityTaipeiTaiwan
  2. 2.Regional Development Research Center, Taiwan Institute of Economic ResearchTaipeiTaiwan
  3. 3.Institute of Management Studies, GoldsmithsUniversity of LondonLondonUK

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