ACE Research Area:
Economic Policy Analysis
using Agent-Based Models

Last Updated: 28 April 2012

Site Maintained By:

Leigh Tesfatsion

Department of Economics

Iowa State University

Ames, Iowa 50011-1070

http://www.econ.iastate.edu/tesfatsi/

tesfatsi AT iastate.edu

ACE Website

Macroeconomic Coordination (Course Module)

Agent-Based Macroeconomics

Online ACE Course (Self-Study eBooKB)

The original version of this webpage was created by

Giorgio Fagiolo
Sant'Anna School of Adv Studies, Pisa, Italy
Michele Fortezza
Sant'Anna School of Adv Studies, Pisa, Italy
Iacopo Morchio
Sant'Anna School of Adv Studies, Pisa, Italy
Andrea Roventini
University of Verona, Italy

Table of Contents:

Introductory Materials

Microeconomic Policy in ABMs

Macroeconomic Policy in ABMs

A Taxonomy

Site Maintained By:: Leigh Tesfatsion; Department of Economics; Iowa State University; Ames, Iowa 50011-1070; http://www.econ.iastate.edu/tesfatsi/; tesfatsi AT iastate.edu
ACE Website
Macroeconomic Coordination (Course Module)
Agent-Based Macroeconomics
Online ACE Course (Self-Study eBooKB)

Introductory Materials

Giorgio Fagiolo and Andrea Roventini, "On the Scientific Status of Economic Policy: A Tale of Alternative Paradigms" (pdf,294KB), Laboratory of Economics and Managemente (LEMB), Sant'Anna School of Adv Studies, Pisa, Italy, LEM Working Paper Series, February 2008.

Abstract: "In the last years, a number of contributions has argued that monetary – and, more generally, economic – policy is finally becoming more of a science. According to these authors, policy rules implemented by central banks are nowadays well supported by a theoretical framework (the New Neoclassical Synthesis) upon which a general consensus has emerged in the economic profession. In other words, scientific discussion on economic policy seems to be ultimately confined to either fine-tuning this “consensus” model, or assessing the ex- tent to which “elements of art” still exist in the conduct of monetary policy. In this paper, we present a substantially opposite view, rooted in a critical discussion of the theoretical, empirical and political-economy pitfalls of the neoclassical approach to policy analysis. Our discussion indicates that we are still far from building a science of economic policy. We suggest that a more fruitful research avenue to pursue is to explore alternative theoretical paradigms, which can escape the strong theoretical requirements of neoclassical models (e.g., equilibrium, rationality, etc.). We briefly introduce one of the most successful alternative research projects – known in the literature as agent-based computational economics (ACE) – and we present the way it has been applied to policy analysis issues. We conclude by discussing the methodological status of ACE, as well as the (many) problems it raises."

The paper is forthcoming in 2012 in Knowledge Engineering Review.
Stefan Mendritzki, "Artificial Policy: Examining the Use of Agent-Based Modeling in Policy Contexts" (pdf,723KB), M.S. Thesis, University of Calgary, Alberta, Canada, June 2010.

Abstract: "Recent economic events have amplified the importance of considering the appropriateness of different modelling traditions as the basis of policy advice. In the context of innovation policy, the appropriateness of agent-based modelling is explored relative to alternative modelling approaches. Validation, which is the process of evaluating the empirical adequacy of models, is raised as an important but complex factor in evaluating policy models. Analysis of validation generally supports claims that descriptive models are subject to the strongest validity tests. However, the validity-centric approach is criticized as creating models of insufficient scope to be useful for policy. Mid level policy modelling is suggested as an underexploited niche which allows sufficient scope to be useful in policy contexts while still maintaining links to empirical methods. This analysis confronts the idea that an increased focus on the validation of models is all that is required to better support policy decisions."
Following the July 2005 Workshop ‘Agent-Based Models for Economics Policy Design’, held at the Center for Interdisciplinary Research (ZiF), Bielefeld University, in 2008 a special issue on "Agent-Based Models for Economic Policy Design", edited by Herbert Dawid and Giorgio Fagiolo, has appeared in the Journal of Economic Behavior and Organization, 2008, Volume 67, Issue 2. The list of contributions to the special issue can be accessed here.

In ABMs, policies can be studied from many different points of view: one can be interested in the effect of market structure on the outcome of the policy, or viceversa; policies could be also studied in terms of rules and efficient market design; finally, ABMs can be used in order to better understand the effect of interaction structures and institutions on policy outcomes.

In what follows, we survey a number of papers studying ABMs that address microeconomic policy issues using ABMs that describe a society, an industry, or a market from a micro perspective (without any attempt to derive general disequilibrium implications). The list is not meant to be exhaustive. Please suggest ay additional paper related to microeconomic policy using ABMs.

This work analyzes a model of interactions and connections between agents, in order to understand which differences arise in the final structure of the network, with respect to an efficient one, when agents behave as selfish individuals. In such connection model (which is a spatialized version of the connections model of Jackson and Wolinski, 1996), every individual tries to maximize the value of his direct and indirect connections with other agents. Direct connections are costly, while indirect connections become weaker as the distance between individuals increases. Results show that selfish agents lead to significantly less efficient networks for a given parameter structure.
: The paper explores the behaviour of lottery markets in order to identify the optimal tax rate which should be applied on lotteries, as well as the way the market behaves. Lottery market is modeled as a set of autonomous agents who use genetic angorithms and fuzzy logic to endogenously adapt to exhibit behavioral properties which are consistent with well-known stylized facts typical of lottery markets. The model shows a Laffer curve with a flat top, which indicates that the optimal tax rate is not unique; furthermore, simulations study selection behavior of individuals. Every finding of the model is compared with empirical results.
: "This paper investigates the interplay between monetary aggregates and the dynamics and variability of output and prices by considering both the money supplied by commercial banks as credit to firms and the fiat money created by the central bank through the quantitative easing monetary policy. The authors address this problem by means of an agent-based model and simulator, called Eurace, which is characterized by a complete set of interrelated markets and different types of interacting agents, modeled according to a rigorous balance-sheet approach. The dynamics of credit money is endogenous and depends on the supply of credit from the banking system, which is constrained by its equity base, and the demand of credit from firms in order to finance their production activity. Alternative dynamic paths for credit money have been produced by setting different firms’ dividend policies. Results point out the strict dependence of output and prices dynamics on monetary aggregates, and show the emergence of endogenous business cycles which are mainly due to the interplay between the real economic activity and its financing through the credit market."
: The two authors develop a model of internet auctions in order to understand the effects of closing rules (such as "hard" or "soft" close) on bidding behavior. Agents are modeled as finite automata which update their strategies using genetic algorithms. Simulations of the model bring to a behavior of the agents consistent with empirical evidence: for instance, hard-close auctions bring to significantly higher late-bids. The model suggests possible advantages and disadvantages of market structures: hard-close auctions seem to bring greater advantages to bidders, and lower gains for sellers, than soft-close auctions.
: The paper discusses the effects of a policy change on the structure of agricultural markets and, in particular, whether initial conditions and structure of the market have any effect on the final policy outcome. This work uses the AgriPolis model: in such model, farms are modeled as heterogeneous agents whose final goal is to maximize household income. Every farm, which is considered as boundedly rational, combines many production activities and investment choices, given resource constraints and the state of the environment. The model is used to simulate the effect of policies on two different farming structures in different regions of Germany. Result show that the structure of the farm sector has a fundamental influence on the use of the land, on farm size and on investments.
: This study evaluates the effectiveness of industrial policies in industries characterized by dynamic increasing returns on the basis of a ‘history friendly model’ of the evolution of the computer industry. Specifically, the study concentrates on two sets of policies: antitrust and interventions aiming at supporting the entry of new firms in the industry. Simulations show that in markets where strong dynamic increasing returns exist, both through technological capabilities and through customer tendency to stick to a brand, there is obviously a strong tendency towards concentration and some sort of ‘natural monopoly’. Policy interventions are ineffective in significantly modifying the degree of concentration. On the other hand, policies that discourage efforts of firms to lock in their customers can both decrease the concentration of the market and increase the effectiveness of traditional policies, even if they are not sufficient to prevent the emergence of a market leader. The reason for this ‘policy ineffectiveness’ result lies in the strongly cumulative nature of the market. In order to get results, strong and targeted interventions are necessary, as policies should make competitors able to catch up with the monopolist, and not just to remove static disadvantages. Another interesting result of the model is that there is little difference in terms of overall efficiency (technological progress and prices) between more concentrated and more competitive markets. The model, however, does not embody the possibility that competition generate novelty, more than monopoly. A hint on the importance of this aspect is that in presence of technological discontinuities is much easier to erode monopoly.
: This paper examines the effects of different types of public policies ranging from antitrust to public procurement, open standards, information diffusion and basic research support on the co-evolution of two, vertically related industries in changing and uncertain technological and market environments. The model has been built following the "history-friendly" approach. This class of models (for further discussion see Malerba et al., 1999, 2001) attempts to formalize the verbal appreciative theories about the main factors explaining the particular pattern of evolution of an industry or technology put forth by empirical scholars of that industry. Thus, they tend to incorporate more industry specific details than is customary of models built by economists, as the researcher is forced to explain in satisfactory detail the hypotheses used as bases for an "appreciative" explanation of the evolution of a certain sector. The model shows that different policies have quite different effects (or no effect at all) on some key policy targets such as market power or rate of technical progress; that there are major inter-industry effects of policies, transmitted vertically and horizontally across markets; and that the unintended consequences of policies may be significant, both in the same industry and in related sectors.
: This paper studies the vertical relationships between gas and electricity markets, expecially with respect to market power of vertically integrated firms. In the model, reward interdependences between strategic business units within a vertically integrated firm lead to trading coordination and higher prices. Under tight reward interdependence structures, vertically integrated firms increase the scope for upstream profits. This leads to strategic behaviour with the superficial appearance of foreclosure, but based on a quite different principle. In this case, higher prices relate to the nature of energy markets, which facilitate the emergence of financial netback effects. The financial dependence between electricity and natural gas markets does not seem to be captured by the classical models of vertical foreclosure, where causal pricing relationships are sequential from the upstream to the downstream segment. Simulations suggest a new mechanism to solve the puzzle of how vertical market power appears in some energy markets where it should not.
: The Wholesale Power Market Platform (WPMP) is a template for U.S. wholesale power markets proposed in 2003 by the U.S. Federal Energy Regulatory Commission. The present study reports on the development and implementation of an agent-based testbed ("AMES") for testing the performance of actual or proposed market designs from a social welfare viewpoint. In particular, we explore the extent to which the WPMP design is capable of supporting the efficient, profitable, and sustainable operation over time for existing generation and transmission facilities, despite possible attempts by some market participants to gain individual advantage through strategic pricing, capacity withholding, and induced transmission congestion. The AMES testbed models strategic traders interacting over time in a wholesale power market that is organized in accordance with core WPMP features and that operates over a realistically rendered transmission grid subject to congestion effects. The AMES traders are strategic profit-seeking agents whose learning behaviors are based on data from human-subject experiments. Simulations show that WPMP features permit and even encourage the exercise of market power by Generators through strategic reporting of supply offers. Related work can be accessed here.; In this study the authors analyze a virtual society facing choices about crime prevention decisions, adjusting their decisions over time as they attempt to balance the cost of crime with the cost of fighting it. The society that ultimately emerges exhibits aggregate criminal characteristics that mimic patterns of crime observable in the natural world. A series of anti-crime policy experiments illustrate how different approaches to crime protection and incarceration can vary in their efficiency at reducing crime.

Macroeconomic ABMs try to give an explicit microfoundation to the observed behavior of modern economies, taking into account heterogeneity of agents, micro-macro dynamics and path dependency. These models are able to explain a wide range of observed statistical regularities, as well as to reproduce the observed behaviour of some particular macro-dynamics.
Such models are also suitable as a laboratory for policy experiments; the main fields of research concern the role of public policies on growth, the stimulation of demand through multiplier/accelerator mechanisms, the regulation of financial markets. In what follows, we survey a number of papers studying ABMs that address macroeconomic policy issues, i.e. ABMs that describe a set of industries or markets from a macro perspective. The list is not meant to be exhaustive. Please suggest any additional paper related to macroeconomic policy using ABMs.: The authors present a macroeconomic model in which technological dynamics, as well as income distribution, play a crucial role. The goal of the paper is to understand the role of innovation and income distribution on long-run growth and consumption. At the firm level, the model takes into account technological innovations and organizational issues, and their impact on the structure and distribution of earnings. Then, this kind of dynamical distribution of income determines changes in the path of consumption. Such a model is able to link the supply side, determined by technological patterns, and the consumption needs on the demand side. The model gives a number of relevant results: growth emerges from a complex causation process that involves technological changes and demand shifts; organisational structures induce strong effects on GDP growth and income distribution; product heterogeneity, built along time, leads to higher growth but can lead also to higher inequality; the increase in earnings disparities has a large negative effect on inequality and growth, leading also to a sticky minimum wage.
: The focus of this macroeconomic model (based on the EURACE project) is to understand the role of public policies and spending on an heterogeneous macroeconomic area, which is divided in different geographical areas. In particular, the paper analyzes the effects of different distributions of spending on the labor market, which is composed of heterogeneous (with respect to skills) workers, and on production. A calibrated model is used to evaluate different policy distributions. Results show that focusing on one area is the worst policy, while spreading funds equally in every region gives rise to higher output in the long run, but not in the short run.
: The authors develop a theoretical evolutionary model in order to study the impact of different monetary policies on inflation and stabilization of aggregate output. In particular, the authors focus on the difference between discretionary policy, modeled with evolutionary algorithms, and full commitment to a fixed rule. Results show that, if the central bank wants to minimize output fluctuations, full commitment is preferable to adaptation to the environment. A learning central bank leads the economy to be closer to the target in terms of output gap, but the adaptive behaviour itself increases overall volatility of GDP. A fixed rule increases overall welfare in terms of lower GDP fluctuations and low inflation.
: This paper provides an introduction to the EURACE project. The goal of EURACE is the development of a massive economic model of the whole European Union, based on a complicated structure of interactions and networks which are comprehensive of households, firms, banks and institutional factors. The general structure of the model for EURACE is based on the Flexible Large-scale Agent Modeling Environment (FLAME). Consumption market is modeled as a decentralized market, with local interactions between firms and consumers. The labor market is also decentralized: search-and-maching processes are used to represent interactions between firms and workers. Market for investment goods is modeled as centralized. Finally, there are a credit market and a financial asset market. This work presents illustrative simulations with a simplified model of the EURACE's labor market, which show for instance that even almost identical initial conditions in different regions can lead to big differences between the regional economies, due to emerging heterogeneity among agents.
: The two papers discuss a macroeconomic model in which a Schumpeterian core on the side of supply is merged with bounded rationality, also showing Keynesian features. On the supply side, two sectors of equipment producers and consumption-good producers interact. The first one performs R&D and sells machinery, while the second one makes investment in equipment according to demand expectations. Workers are modeled as identical individuals who consume all their income. Despite being quite simple, the model is able to reproduce many stilized facts of macroeconomic time series: investment is more volatile than consumption and GDP, growth rates of firms are tent-shaped, consumption and investment show a procyclical behaviour. Also, the model shows a multiplier-accelerator behaviour similar to the Keynesian one.
: This work explores the properties of the model discussed in the two previous papers, trying to better understand the connections between technological innovation and aggregate demand formation, which have a strong influence on both the "short run" and the "long run" growth patterns. Furthermore, various simulations of different policy regimes show a fundamental complementarity between Keynesian sustainment of aggregate demand and Schumpeterian policies, whose target is the enhancement of technological progress. A mix of the two policies is able to sustain growth in the long run, keeping unemployment and GDP fluctuations at an acceptable level.
: This paper describes an evolutionary agent based model in order to understand what kind of implications can arise from stochastic evolution of productivity and institutional factors which have influence on labor market. In this model, firms produce a perishable consumption good. The core of the model is its explicit microfoundation of the processes governing the labor market: matching between firms and workers, workers search, wage setting, endogenous formation of demand, endogenous price setting. Results show that this model robustly reproduce statistical regularities of real-world labor markets (such as Beveridge, wage and Okun's curves) and can be used to simulate the effects of institutional, technological and behavioral factors on the final performance (growth, volatility) of the economic system.
: The Tobin tax is a solution proposed by many economists to limit the speculation in foreign exchange and stock markets and to stabilize them. This paper explores the effects of a transaction tax on one and on two related stock markets, using an artificial financial market based on heterogeneous agents. The microstructure of the market is composed of four kinds of traders: random traders, fundamentalists, momentum traders and contrarians, and the resources allocated to them are limited. In each market it is possible to levy a transaction tax. In the case of two markets, each trader can choose in which market to trade, and an attraction function is defined that drives their choice based on perceived profitability. Simulations show that increasing transaction costs leads to a reduction in market volume and to greater volatility. This behaviour appears quite robust, since the effects are observed for most trader compositions and tax rates. The only condition for producing such behavior is the inclusion of speculative traders who follow the trend (or the anti-trend) of prices.
: The author develops an agent-based computational economics model to evaluate the aggregate effect of labor market policies. The labor market is modeled as a set of sectors with specific skill requirement, allocated on a circle. Skill differentiation varies with the distance between sectors. Firms are hit by asymmetric shocks, and workers becoming unemployed have to invest in their human capital in order to qualify for job openings. The investment required is proportional to the distance between sectors. The role of the government is to subsidize training refunding a share of the human capital investment costs to the unemployed workers. The government shall finance the policy through a tax on workers' wages, trying to run a balanced budget. Active labor policies (which are widely used in OECD countries) have a positive effect, increasing the outflow rate from unemployment to employment. Although the overall effect is positive, this effect is achieved by reducing the outflow rate for those who do not receive subsidies.
: In this PhD thesis, a macroeconomic ABM is developed and discussed in order to understand monetary mechanisms and credit evolution in a macroeconomy. As opposed to most existing agent-based models, this one is specifically built to study the role of the "monetary sphere". The model mixes Keynesian elements, such as the importance of demand, with Wicksellian features and transmission mechanisms of monetary policy. The study aims also at building a methodological framework for further work in the direction of monetary economics in ABMs, focusing both on theoretical issues and validation problems.
: This paper presents an agent-based computational model of the economy used as a computational laboratory to evaluate the role of fiscal policy in increasing economic performance. The macroeconomy is modeled as a complex system in wich aggregate behaviours emerge from interaction among individual agents. In the model bounded rational firms and workers trade on fully decentralized markets for final goods and labor by means of random matching protocols. Agents update their choice variables by means of routinized strategies, and a selection mechanism is at work which forces the exit of unprofitable firms. The model replicates several macroeconomic phenomena regularly observed in the data, with aggregate features emerging from the localized interactions of individual entities. In this virtual economy, using tax revenues to subsidize aggregate demand returns a bad result in terms of aggregate activity's growth rate. The opposite holds if tax revenues are employed to subsidize R&D investment.
: This paper analyze the effectiveness of Keynes-Tobin transaction taxes when heterogeneous agents can trade in different markets. In the model boundedly rational agents apply technical and fundamental analysis to identify trading signals in two different speculative markets. Whether an agent trades and, if so, in which market and with which strategy depends on the relative fitness, where the fitness is given as a weighted average of current and past profits. The agents judge on average technical and fundamental analysis as equally useful, which is consistent with survey and experimental data. Simulations reveal that the model is able to mimic the behavior of real speculative markets quite well. In particular, artificial time series are portrayed by intricate price fluctuations, bubbles and crashes, excess volatility, leptokurtic returns and clustered volatility. When a transaction tax is introduced in one market price variability decreases in the taxed market but increases in the other market. If all markets introduce a uniform transaction tax, then economically unjustified speculation is dampened, agents focus more strongly on fundamental data, and all markets are stabilized.
: This paper explores the extent to which agent-based models may be used as an artificial test bed to evaluate certain regulatory policies such as transaction taxes, central bank interventions and trading halts. Within these models, agents are usually regarded as boundedly rational and apply simple yet reasonable trading strategies. A simple model is presented in which market participants may use technical or fundamental trading strategies to determine their orders or they may abstain from the market. The decision in favor of one of these three strategies is repeated every trading period and is based on the strategies’ past performance. In this framework, regulatory policies generally have the potential to stabilize financial markets, and seem to reduce both distortion in the market and the volatility of prices. In addition, the findings of related papers are reported. On the whole, agent based models can give insight on financial market otherwise precluded, but in order to give quantitative results calibration and estimation are crucial. More complex models that include more realistic features of agents' behaviour should also be applied.

A Taxonomy

In the following table we try to summarize the state of the art related to ABMs addressing economic-policy issues.

The taxonomy is organized across two dimensions. Rows classify papers according to whether they principally address issues related to micro, meso or macro economic policies. Meso papers mosty relate to setups or policy issues concerning industries and in general partial-disequilibrium analyses. Columns report a brief list of specific policy-related issues addressed in these papers and classify the papers accordng to the degree at which empirical validation (of some kind) is pursued in the analysis.

We distinguish between: (i) no validation, if no (or very mild) attempts at taking the model to the date is pursued; (ii) input validation, if there is an attempt of building the model on assumptions about individual behaviors and interactions that are sustained by some empirical or experimental fact (but no clear attempt is made to validate the outputs of the model); (iii) output validation, if the outputs of the models are taken to the data to assess their validity, but no input validation is performed; (iv) Input/Output Validation, if both are performed.

Policy Questions No Validation Input Validation Output Validation Input/Output Validation

Micro Is a society formed by selfish individuals capable of constructing an efficient network? (Carayol,Roux,Yildizoglu)
Is there a unique optimal tax rate for lottery markets? (Chen,Chie)

What is the effect of different market structures and rules on auctions? (Duffy,Unver)

Do policies and structure of agricultural sector interact? Is structure capable of influencing the outcome of policies? Are policies able to change the structure of such sector over time? (Happe,Balmann,Kellermann,Sahrbacher)

Is the regulation of US power market efficient? How can oppostunistic behaviour of suppliers be prevented? (Sun,Tesfatsion)

What is the effect of public policies on vertically related industries characterized by rapid technological innovation? (Malerba,2008)

How effective are public policies in industries characterized by dynamic increasing returns? How do they affect industry structure over the course of industry evolution? (Malerba,2001)

Why does market power emerge in vertically integrated energy markets? (Ruperez-Micola,Banal-Estanol,Bunn)

Carayol, N., P. Roux and M. Yildizoglu (2008) - "Inefficiencies in a Model of Spatial Networks Formation with Positive Externalities"
Wilhite, A. and W. Allen (2008) - "Crime, Protection, and Incarceration"

Mannaro, K., M. Marchesi and A. Setzu (2008), "Using an Artificial Financial Market for Assessing the Impact of Tobin-like Transaction Taxes"
Happe, K., A. Balmann, K. Kellermann and C. Sahrbacher (2008) - "Does Structure Matter? The Impact of Switching the Agricultural Policy Regime on Farm Structures"
Sun, J. and L. Tesfatsion (2007) - "Dynamic Testing of Wholesale Power Market Designs: An Open-Source Agent-Based Framework"

Ruperez-Micola, A., A. Banal-Estanol and D. Bunn (2008), "Incentives and Coordination in Vertically Related Energy Markets"
Malerba, F., R. Nelson, L. Orsenigo and S. Winter (2008), "Public Policies and Changing Boundaries of Firms in a History-Friendly Model of the Co-evolution of the Computer and Semiconductor Industries"
Malerba F., R. Nelson, L. Orsenigo and S. Winter (2001), "Competition and industrial policies in a ‘history friendly’ model of the evolution of the computer industry"

John Duffy, M.Utku Unver - "Internet auctions with artificial adaptive agents: A study on market design" Chen, S.H. and B.T. Chie (2008) - "Lottery Markets Design, Micro Structure and Macro Behavior: An ACE Approach"

Macro Is fiscal policy able to increase economic performance and dampen economic cycles? (Russo,Catalano,Gallegati,Gaffeo,Napoletano) (Dosi,Fagiolo,Roventini[1]) (Dosi,Fagiolo,Roventini[2])
How do product differentiation, organizational structures, inequality and growth interact? (Ciarli,Lorentz,Savona,Valente)

Public expense should be geographically focused or spread equally between regions? (Dawid,Gemkow,Harting,Kabus,Neugart)

Is discretionary monetary policy better than full commitment to a fixed monetary rule? (Delli Gatti,Gaffeo,Gallegati)

When labor markets are local, is a monetary area able to reach economic homogeneity between regions? (Deissenberg,Van Der Hoog,Dawid)

What are the main transmission mechanisms of monetary policy? How does monetary policy affect economic outcome? (Oeffner)

Are active labor market policies efficient in order to reduce unemployment? (Neugart)

What are the effects of institutional, technological and behavioral factors on the final performance of the labor market? (Fagiolo,Dosi,Gabriele)

How effective are regulatory policies for financial markets? (Westerhoff,Dieci[1]) (Westerhoff,Dieci[2]) (Mannaro,Marchesi,Setzu)

Ciarli, T., A. Lorentz, M. Savona and M. Valente (2008), "Structural Change of Production and Consumption: A Micro to Macro Approach to Economic Growth and Income Distribution"
Dawid, H., S. Gemkow, P. Harting, K. Kabus and K. Neugart, M.and Wersching (2008), "Skills, Innovation, and Growth: An Agent-Based Policy Analysis"

Deissenberg, C., S. van der Hoog and H. Dawid (2008) - "EURACE: A Massively Parallel Agent-based Model of the European Economy"

D. Delli Gatti, E. Gaffeo, M. Gallegati (2005) - "The apprentice wizard: monetary policy, complexity and learning"

Neugart, M. (2008), "Labor Market Policy Evaluation with ACE", Special Issue on "Agent-Based Models for Economic Policy Design"

Westerhoff, F. (2008) - "The Use of Agent-Based Financial Market Models to Test the Effectiveness of Regulatory Policies"

Russo, A., M. Catalano, M. Gallegati, E. Gaffeo and M. Napoletano (2007), "Industrial Dynamics, Fiscal Policy and R&D: Evidence from a Computational Experiment"
Oeffner, Marc (2009), "An Evolutionary Model embedded in an Agent-Based Computer Simulation"

Fagiolo, G., G. Dosi and R. Gabriele (2004), "Matching, Bargaining, and Wage Setting in an Evolutionary Model of Labor Market and Output Dynamics"
Dosi, G., G. Fagiolo and A. Roventini (2006) - "An Evolutionary Model of Endogenous Business Cycles"
Dosi, G., G. Fagiolo and A. Roventini (2008) - "The Microfoundations of Business Cycles: an Evolutionary, Multi-Agent Model"

Dosi, G., G. Fagiolo and A. Roventini - "Schumpeter Meeting Keynes: A Policy-Friendly Model of Endogenous Growth and Business Cycles"

Westerhoff, F., Dieci, R., 2006. "The effectiveness of Keynes' Tobin transaction taxes when heterogeneous agents can trade in different markets: a behavioral finance approach"

ACE Research Area:Economic Policy Analysis using Agent-Based Models

Introductory Materials

Microeconomic Policy in ABMs

Macroeconomic Policy in ABMs

A Taxonomy

Copyright © 2012 Leigh Tesfatsion. All Rights Reserved.

ACE Research Area:
Economic Policy Analysis
using Agent-Based Models