IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Can Artificial Economies Help us Understand Real Economies?

Listed author(s):
  • Alan Kirman

This paper argues that the path followed by modern macroeconomic theory excludes the analysis of major endogenous movements in macroeconomic variables. Rather than persist with models based on the idea that the economy behaves like a rational individual we should build models of the economy as a complex system of interacting agents. Profiting from the advances made in computer science we can now build agent based or computational models which allow us to model the out of equilibrium behaviour of such systems. They allow us to remove many of the restrictive assumptions of standard models and to incorporate the heterogeneity of economic agents and the evolution of the network that governs the interactions between the individuals and firms in the economy. Such models can help fill the theoretical void with which policymakers declare that they have been faced in the current crisis.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: free

File URL:
Download Restriction: free

Article provided by Presses de Sciences-Po in its journal Revue de l'OFCE.

Volume (Year): N° 124 (2012)
Issue (Month): 5 ()
Pages: 15-41

in new window

Handle: RePEc:cai:reofsp:reof_124_0015
Contact details of provider: Web page:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:cai:reofsp:reof_124_0015. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.