Endogenous Growth in a Swarm Economy: Fighting Time, Space, and Complexity
Agent-based methods have provided economics with new ways of modeling economic processes. We have found these possibilities useful with respect to modeling endogenous growth, in particular the modeling of learning agents that must cope with real world growth constraints such as time, space, and complexity. Time and space are immediately given once a two-dimensional space with agents moving in time is introduced. Complexity is modeled by using single-cell neural nets as a metaphor for production units and XOR-problems as metaphors for demand signals. The production units learn by changing the weights in their neural nets, but their structure is too simple to learn to respond correctly to demand signals. However, as entrepreneurs, production units may connect more production units into more complex neural nets and thus improve the efficiency. We thus have an artificial economy where economic growth is driven by demand but limited by both demand and supply sides. On the supply side, neural nets must receive demand signals to learn and thus become more efficient. Besides time and space constraints in the search for efficient production, the demand side is constrained by the distribution of the generated wealth since agents have limited access to credit. An interesting feature of the model is how it produces cycles around the growth path.
|Date of creation:||01 Mar 1999|
|Contact details of provider:|| Postal: CEF99, Boston College, Department of Economics, Chestnut Hill MA 02467 USA|
Web page: http://fmwww.bc.edu/CEF99/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert J. Barro, 1999. "Inequality, Growth, and Investment," NBER Working Papers 7038, National Bureau of Economic Research, Inc.
- Quah, Danny, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," CEPR Discussion Papers 1586, C.E.P.R. Discussion Papers.
- Quah, Danny T, 1997. "Empirics for Growth and Distribution: Stratification, Polarization, and Convergence Clubs," Journal of Economic Growth, Springer, vol. 2(1), pages 27-59, March.
When requesting a correction, please mention this item's handle: RePEc:sce:scecf9:1354. 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: (Christopher F. Baum)
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.