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Agent-Based Computational Economics

  • Leigh Tesfatsion

    (Iowa State University)

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 repeatedly 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 study discusses the key characteristics 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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File URL: http://econwpa.repec.org/eps/comp/papers/0203/0203001.pdf
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Paper provided by EconWPA in its series Computational Economics with number 0203001.

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Length: 30 pages
Date of creation: 15 Mar 2002
Date of revision: 15 Aug 2002
Handle: RePEc:wpa:wuwpco:0203001
Note: Type of Document - Acrobat PDF; prepared on IBM PC - PC-TEX; to print on HP/PostScript/; pages: 30; figures: None
Contact details of provider: Web page: http://econwpa.repec.org

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