PROJECTION OF A HETEROGENOUS AGENT-BASED PRODUCTION ECONOMY MODEL TO A CLOSED DYNAMICS OF AGGREGATE VARIABLES

Kristian Lindgren, Emma Jonson and Liv Lundberg
Additional contact information
Kristian Lindgren: Department of Energy and Environment, Chalmers University of Technology, SE-41296 Gothenburg, Sweden
Emma Jonson: Department of Energy and Environment, Chalmers University of Technology, SE-41296 Gothenburg, Sweden
Liv Lundberg: Department of Energy and Environment, Chalmers University of Technology, SE-41296 Gothenburg, Sweden

Advances in Complex Systems (ACS), 2015, vol. 18, issue 05n06, 1-19

Abstract: A model framework that describes a simple production economy is presented, in which the micro-dynamics can be projected to a closed dynamics of aggregate variables. The construction is based on an agent-based model with heterogeneity both regarding production characteristics and the strategies agents use to predict future prices as a basis for choosing what to produce. The world is divided into a number of regional markets that collect the locally produced goods and via inter-market trade supply regional demands with goods. We discuss the model features that make it possible to project the agent-based micro-dynamics to a closed form dynamics on the level of regionally aggregate quantities. One advantage of such a projection from a high dimensional agent-based dynamics to a low dimensional dynamical system is that the stability characteristics can be analytically approached, and this is illustrated by a derived condition for when a mix of naive and rational agents can stabilize the system. Some illustrations of the general framework in a model of global agricultural land-use are also given.

Keywords: Agent-based model; model projection; aggregate dynamics; agricultural land-use; stability (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219525915500125
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:acsxxx:v:18:y:2015:i:05n06:n:s0219525915500125

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219525915500125

Access Statistics for this article

Advances in Complex Systems (ACS) is currently edited by Frank Schweitzer

More articles in Advances in Complex Systems (ACS) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().