Agent-based modeling for decision making in economics under uncertainty

Artikel

Ever since the emergence of economics as a distinct scientific discipline, policy makers have turned to economic models to guide policy interventions. If policy makers seek to enhance growth of an open capitalist economy, they have to take into account, firstly, the uncertainties, inefficiencies, and market failures faced by the agents in the economy, and, secondly, the activities, network structure, and interactions in the innovation and production system. The authors discuss ins-and-outs of developing and using (encompassing and empirically calibrated) agent-based models for (i) abductive theorizing about causes for empirical realities, and (ii) evaluating effects of policy interventions. To ensure that derived policies are suitable to intervene in the real world and not just the stylization of it, they discuss validity and operationalization of agent-based models as well as interpretation of simulation results.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economics: The Open-Access, Open-Assessment E-Journal ; ISSN: 1864-6042 ; Volume: 10 ; Year: 2016 ; Issue: 2016-6 ; Pages: 1-33 ; Kiel: Kiel Institute for the World Economy (IfW)

Classification and Topics

• Classification: Wirtschaft ; Current Heterodox Approaches: Historical; Institutional; Evolutionary ; Computational Techniques; Simulation Modeling ; Criteria for Decision-Making under Risk and Uncertainty ; Management of Technological Innovation and R&D ; Capitalist Systems: General
• Subject: Decision making ; uncertainty ; rationality ; agent-based model ; policy instrument ; innovation economics ; Schumpeter

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Vermeulen, Ben ; Pyka, Andreas
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2016

Further information

• DOI: doi:10.5018/economics-ejournal.ja.2016-6
• Handle: http://hdl.handle.net/10419/127431
• Last update: 10.03.2025, 11:43 AM CET