Agent-based Macroeconomics and Dynamic Stochastic General Equilibrium Models: Where do we go from here?

Özge Dilaver, Robert Calvert Jump and Paul Levine ()
Additional contact information
Özge Dilaver: University of Surrey

No 116, School of Economics Discussion Papers from School of Economics, University of Surrey

Abstract: Agent-based computational economics (ACE) has been used for tackling major research questions in macroeconomics for at least two decades. This growing field positions itself as an alternative to dynamic stochastic general equilibrium (DSGE) models. In this paper we first review the arguments raised against DSGE in the ACE literature. We then review existing ACE models, and their empirical performance. We then turn to a literature on behavioural New Keynesian models that attempts to synthesise these two approaches to macroeconomic modelling by incorporating some of the insights of ACE into DSGE modelling. We highlight the individually rational New Keynesian model following Deak et al. (2015) and discuss how this line of research can progress.

JEL-codes: E03 E12 E32 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016-01
New Economics Papers: this item is included in nep-cmp, nep-dge, nep-hpe, nep-mac and nep-ore
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
https://repec.som.surrey.ac.uk/2016/DP01-16.pdf (application/pdf)

Related works:
Journal Article: AGENT‐BASED MACROECONOMICS AND DYNAMIC STOCHASTIC GENERAL EQUILIBRIUM MODELS: WHERE DO WE GO FROM HERE? (2018)
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:sur:surrec:0116

Access Statistics for this paper

More papers in School of Economics Discussion Papers from School of Economics, University of Surrey Contact information at EDIRC.
Bibliographic data for series maintained by Ioannis Lazopoulos ().