The economy needs agent-based modelling

Farmer, J. Doyne; Foley, Duncan
August 2009
Nature;8/6/2009, Vol. 460 Issue 7256, p685
Academic Journal
In this article the authors propose the used of agent-based models to assess policies that address economic recovery. The authors are critical of the econometric and dynamic stochastic general equilibrium models employ by U.S. administration arguing that the models have fatal flaws. Thus, the authors discuss the advantages and application of agent-based models, which is a computerized simulation of a number of decision-makers and institutions that interact under prescribed rules.


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