The impact of expectations in an agent-based model
Within the context of an agent-based model, model selection by the economic agents is introduced and investigated. To achieve this, a specific agent, the â€œeconomic research instituteâ€, is set up and produces regular forecasts of the economy which are published to the economic agents. The forecasts are based upon linear regressions updated each period. Expectation errors may arise and agents may chose to change their behaviour based upon these forecasts. Moreover, agents might change their interpretation of the forecast data and decide upon using this data or not. Alternatively, a simple VAR model of the economy is implemented and provided by a different research institute. Model selection is implemented by a genetic algorithm, and each agent uses a linear function to produce its individual forecasts. Thus, each agent has its own â€œprivateâ€ model of the economy, based upon the two alternative forecasts of the research institutes. Following this "competition" of the research institutes and the build-up of a large number of different meta-models, several aspects of different expectation building processes are investigated: e.g. information diffusion processes, model selection of smart agents based upon a GA, the impact of different forecast mechanisms on the economic outcome
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||04 Jul 2006|
|Date of revision:|
|Contact details of provider:|| Web page: http://comp-econ.org/Email: |
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:sce:scecfa:360. 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 references are entirely missing, you can add them using this form.