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Adaptive Microfoundations for Emergent Macroeconomics

Author

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  • Edoardo Gaffeo

    (Department of Economics and CEEL, University of Trento, Via Inama 5, Trento I-38100, Italy)

  • Domenico Delli Gatti

    (Institute of Economic Theory and Quantitative Methods, Catholic University of Milan, Milan, Italy)

  • Saul Desiderio

    (Department of Economics, Università Politecnica delle Marche, Ancona, Italy)

  • Mauro Gallegati

    (Department of Economics, Università Politecnica delle Marche, Ancona, Italy)

Abstract

In this paper we present the basics of a research program aimed at providing microfoundations to macroeconomic theory on the basis of computational agent-based adaptive descriptions of individual behavior. To exemplify our proposal, a simple prototype model of decentralized multi-market transactions is offered. We show that a very simple agent-based computational laboratory can challenge more structured Dynamic Stochastic General Equilibrium models in mimicking comovements over the business cycle. Eastern Economic Journal (2008) 34, 441–463. doi:10.1057/eej.2008.27

Suggested Citation

  • Edoardo Gaffeo & Domenico Delli Gatti & Saul Desiderio & Mauro Gallegati, 2008. "Adaptive Microfoundations for Emergent Macroeconomics," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(4), pages 441-463.
  • Handle: RePEc:pal:easeco:v:34:y:2008:i:4:p:441-463
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    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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