Advances in the agent-based modeling of economic and social behavior

Abstract

In this review we discuss advances in the agent-based modeling of economic and social systems. We show the state of the art of the heuristic design of agents and how behavioral economics and laboratory experiments have improved the modeling of agent behavior. We further discuss how economic networks and social systems can be modeled and we discuss novel methodology and data sources. Lastly, we present an overview of estimation techniques to calibrate and validate agent-based models and show avenues for future research.

Microfounding GARCH Models and Beyond: A Kyle-inspired Model with Adaptive Agents

“…8, where we show the results of the modified model simulation in the sticky expectation regime given by Eq. (11). One can see in blue the results of simulations where the noise trader is cost neutral, while in orange one sees the results where the noise trader is cost averse.…”

“…An interesting research agenda consists in understanding how statistical models can be rationalised in terms of sound microfoundations. In particular, one asks what are the minimal hypotheses regarding agents' behaviour needed to properly microfound a given statistical model; agent-based models are in fact well-known for their versatility [11].…”

Lessons from COVID-19 for managing transboundary climate risks and building resilience

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Link recommendations: Their impact on network structure and minorities

“…This is why simulation-based approaches are often necessary for this kind of investigations. In addition, the simulation approach enables us to examine different scenarios which might not occur in one instance of the data [32].…”