A multi-agent model of several economic regions

Wolf, Sarah; Fürst, Steffen; Mandel, Antoine; Lass, Wiebke; Lincke, Daniël; Pablo-Martí, Federico; Jaeger, Carlo

doi:10.1016/j.envsoft.2012.12.012

Cited by 66 publications

(45 citation statements)

References 18 publications

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“…Combining costs and mitigation into agentbased integrated assessment models (IAMs) is a new field. One of the first examples of combining complex economies with climate models comes from the LAGOM model family that is able to deal with different timescales for modules and spatially distributed energy production and pollution [73][74][75] but it is not yet an IAM. The first fully fledged agent-based IAM might be the Dystopian Schumpeter meeting Keynes (DSK) model from Lamperti et al [76].…”

Section: Specific Problems With Energy Modelsmentioning

confidence: 99%

Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Hoekstra

Steinbuch

Verbong³

2017

Complexity

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The energy domain is still dominated by equilibrium models that underestimate both the dangers and opportunities related to climate change. In reality, climate and energy systems contain tipping points, feedback loops, and exponential developments. This paper describes how to create realistic energy transition management models: quantitative models that can discover profitable pathways from fossil fuels to renewable energy. We review the literature regarding agent-based economics, disruptive innovation, and transition management and determine the following requirements. Actors must be detailed, heterogeneous, interacting, learning, and strategizing. Technology should be represented as a detailed and heterogeneous portfolio that can develop in a bottom-up manner, using endogenous feedback loops. Assumptions about discount rates and the social cost of carbon should be configurable. The model should contain interactions between the global, national, local, and individual level. A review of modelling techniques shows that equilibrium models are unsuitable and that system dynamics and discrete event simulation are too limited. The agent-based approach is found to be uniquely suited for the complex adaptive sociotechnical systems that must be modelled. But the choice for agent-based models does not mean a rejection of other approaches because they can be accommodated within the agent-based framework. We conclude with practical guidelines.

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Section: Specific Problems With Energy Modelsmentioning

confidence: 99%

Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Hoekstra

Steinbuch

Verbong³

2017

Complexity

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“…In the last ten years a number of closed macroeconomic models using an agent-based approach have been developed (e.g., Gintis, 2007;Dosi et al, 2010;Delli Gatti et al, 2010;Ashraf et al, 2011;Raberto et al, 2012;Wolf et al, 2013;Dosi et al, 2013;Riccetti et al, 2013). Several of these agent-based macroeconomic models have shown the importance of the approach for economic policy design.…”

Section: General Considerationsmentioning

confidence: 99%

Stabilization Policies and Long Term Growth: Policy Implications from an Agent-Based Macroeconomic Model

Harting

2015

SSRN Journal

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Do fiscal stabilization policies affect the long-term growth of the economy? If so, are the long-term effects growth-enhancing or growth-reducing? These questions have again become relevant to the political and academic debate since governments have been forced to spend considerable funds for economic stimulus packages as a response to the recent economic crisis. The answers provided by the economic literature are inconclusive. But a general observation is that, while the theoretical literature has emphasized the importance of structural issues as, e.g., the modeling approach of endogenous technological change, less attention has been paid to an elaborate design of the considered fiscal stabilization policies. This paper uses a closed agent-based macroeconomic model that generates endogenous business cycles to emphasize the role of the policy design for long-term growth effects of stabilization policies. By comparing a demand-oriented consumption policy and two different investment subsidizing policies, we can show that the considered policies are equally successful in smoothing the business cycle, but have different implications for the medium and long-term growth of the economy. Hence, not only modeling assumptions as stressed by the literature but also the concrete implementation of the policy seems to be important for the analysis of long-term effects of stabilization policies.

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“…The interactions between complex economic dynamics and climate change are explored in the LAGOM model family (Mandel et al, 2010;Wolf et al, 2013b), where economic growth is endogenously generated by a spatially explicit production network. As in each region carbon emissions are a by-product of energy production, the model can be employed to asses the effect of different mitigation policies.…”

Section: Climate Policymentioning

confidence: 99%

Macroeconomic Policy in DSGE and Agent-Based Models Redux: New Developments and Challenges Ahead

Fagiolo

Roventini

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe Great Recession seems to be a natural experiment for economic analysis, in that it has shown the inadequacy of the predominant theoretical framework -the New Neoclassical Synthesis (NNS) -grounded on the DSGE model. In this paper, we present a critical discussion of the theoretical, empirical and political-economy pitfalls of the DSGE-based approach to policy analysis. We suggest that a more fruitful research avenue should escape the strong theoretical requirements of NNS models (e.g., equilibrium, rationality, representative agent, etc.) and consider the economy as a complex evolving system, i.e. as an ecology populated by heterogenous agents, whose far-from-equilibrium interactions continuously change the structure of the system. This is indeed the methodological core of agent-based computational economics (ACE), which is presented in this paper. We also discuss how ACE has been applied to policy analysis issues, and we provide a survey of macroeconomic policy applications (fiscal and monetary policy, bank regulation, labor market structural reforms and climate change interventions). Finally, we conclude by discussing the methodological status of ACE, as well as the problems it raises.

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A multi-agent model of several economic regions

Cited by 66 publications

References 18 publications

Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Creating Agent-Based Energy Transition Management Models That Can Uncover Profitable Pathways to Climate Change Mitigation

Stabilization Policies and Long Term Growth: Policy Implications from an Agent-Based Macroeconomic Model

Macroeconomic Policy in DSGE and Agent-Based Models Redux: New Developments and Challenges Ahead

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