The Promises and Perils of Agent-Based Computational Economics
Matteo Richiardi ()
Computational Economics from University Library of Munich, Germany
In this paper I analyse the main strengths and weaknesses of agent-based computational models. I first describe how agent-based simulations can complement more traditional modelling techniques. Then, I rationalise the main theoretical critiques against the use of simulation, which point to the following problematic areas: (i) interpretation of the simulation dynamics, (ii) estimation of the simulation model, and (iii) generalisation of the results. I show that there exist solutions for all these issues. Along the way, I clarify some confounding differences in terminology between the computer science and the economic literature.
Keywords: Agent-based; Simulation; Microsimulation; Computational Economics; Structural Estimation; Economic methodology (search for similar items in EconPapers)
JEL-codes: C8 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe and nep-cmp
Note: Type of Document - pdf; prepared on WinXP; pages: 28; figures: 2
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Working Paper: The Promises and Perils of Agent-Based Computational Economics (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpco:0401001
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