A Guided Tour of the Backside of Agent-Based Simulation

Part of the Evolutionary Economics and Social Complexity Science book series (EESCS, volume 4)


Agent-based simulation brings a host of possibilities for the future of economics. It provides a new analytical tool for both economics and mathematics. For a century and a half, mathematics has been the major tool of theoretical analysis in economics. It has provided economics with logic and precision, but economics is now suffering; economics in the twentieth century made this clear. Theorists know that the theoretical framework of economics is not sound and its foundations are fragile. Many have tried to sidestep this theoretical quagmire and failed. Limits of mathematical analysis force theorists to adopt mathematically tractable formulations, though they know these formulations contradict reality. This demonstrates how economics lacks a tool of analysis that is well suited to analyzing the economy’s complexity. Agent-based simulation has the potential to save economics from this dead end and can contribute to reconstructing economics from its very foundations. Achieving this mission requires those engaging in agent-based simulation to have an in-depth understanding of economics based on its critical examinations. This guided tour leads readers around the backside of economics, tells what is wrong with economics and what is needed for its reconstruction, and provides hints for a new direction open to incorporation of agent-based simulation.


Mainstream Economic Dynamic Stochastic General Equilibrium Dynamic Stochastic General Equilibrium Model General Equilibrium Theory General Equilibrium Framework 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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© Springer Japan 2016

Authors and Affiliations

  1. 1.Osaka City UniversityOsakaJapan

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