Agent-based computational economics (ACE) has been the subject of considerable interest as an interdisciplinary tool for investigating economic and environmental-related issues. Models that rely on this approach emphasize the “micro to macro” link because it allows the explicit representation and analysis of the interaction among individual agents as well as between agents and the economic environment.
The course will provide an introduction to the concepts of economic complexity, behavioral heterogeneity, and interaction used in the Agent-based computational approach. Furthermore, it will compare the ABM approach to the mainstream macroeconomic general equilibrium models, and provide further insights into the Behavioral Economics revolution. Special attention will be devoted both to methodological and practical aspects of the complexity approach. A step-by-step introduction of essential ABM building blocks will be presented in order to enable students to gain the necessary knowledge to construct their models and perform simulations using the R Software.
- Teacher: Paola D'Orazio