Multi-agent systems as a tool for analyzing path-dependent macrodynamics

Authored by Mark Setterfield, Shyam Gouri Suresh

Date Published: 2016

DOI: 10.1016/j.strueco.2016.03.001

Sponsors: No sponsors listed

Platforms: MATLAB

Model Documentation: Other Narrative Flow charts Mathematical description

Model Code URLs: Model code not found

Abstract

This paper discusses the concept of path dependence in macrodynamics, and identifies practical difficulties associated with building path-dependent macrodynamic models of the sort that Keynesians and Schumpeterians regard as necessary for the successful study of long-term growth and development. It is suggested that multi-agent systems (MAS) analysis can help address these difficulties, and therefore provides a useful tool for advancing path-dependent macrodynamic analysis. A concrete example is provided in the form of a simple but illustrative MAS model of path-dependent aggregate fluctuations. (C) 2016 Elsevier B.V. All rights reserved.
Tags
Equilibrium Increasing Returns Model Progress Economic-growth History Hysteresis