An interdisciplinary model for macroeconomics

Andrew Haldane () and Arthur Turrell
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Andrew Haldane: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH

No 696, Bank of England working papers from Bank of England

Abstract: Macroeconomic modelling has been under intense scrutiny since the Great Financial Crisis, when serious shortcomings were exposed in the methodology used to understand the economy as a whole. Criticism has been levelled at the assumptions employed in the dominant models, particularly that economic agents are homogeneous and optimising and that the economy is equilibrating. This paper seeks to explore an interdisciplinary approach to macroeconomic modelling, with techniques drawn from other (natural and social) sciences. Specifically, it discusses agent-based modelling, which is used across a wide range of disciplines, as an example of such a technique. Agent-based models are complementary to existing approaches and are suited to answering macroeconomic questions where complexity, heterogeneity, networks, and heuristics play an important role.

Keywords: Macroeconomics; modelling; agent-based model (search for similar items in EconPapers)
JEL-codes: A12 C60 E17 E60 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2017-11-17
New Economics Papers: this item is included in nep-cmp, nep-hme, nep-hpe, nep-mac and nep-pke
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Citations: View citations in EconPapers (21)

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Journal Article: An interdisciplinary model for macroeconomics (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:0696

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