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Agent-Based Computational Economics

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  • Tesfatsion, Leigh

Abstract

Agent-based computational economics (ACE) is the computational study of economies modeled as evolving systems of autonomous interacting agents. Starting from initial conditions, specified by the modeler, the computational economy evolves over time as its constituent agents re- peatedly interact with each other and learn from these interactions. ACE is therefore a bottom-up culture-dish approach to the study of economic systems. This chapter discusses the key charac- teristics and goals of the ACE methodology. Eight currently active research areas are highlighted for concrete illustration. Potential advantages and disadvantages of the ACE methodology are considered, along with open questions and possible directions for future research.

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  • Tesfatsion, Leigh, 2003. "Agent-Based Computational Economics," ISU General Staff Papers 200301010800001248, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:200301010800001248
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    More about this item

    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C0 - Mathematical and Quantitative Methods - - General
    • D0 - Microeconomics - - General
    • E0 - Macroeconomics and Monetary Economics - - General

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