23 Pages Posted: 28 Aug 2010 Last revised: 13 May 2011
Date Written: August 27, 2010
The dynamics of unemployment and its response to measures taken to counter rising unemployment are not fully understood today. Their formal description often assumes homogeneity among individual agents in the labor market. Agent based frameworks allow for the faithful description of heterogenous systems and are thus well suited for a more detailed description of labor market dynamics. Here, we introduce rule-based modeling as a novel approach of agent-based modeling with regard to the description of labor market dynamics. We demonstrate that the main advantages of rule-based modeling, such as the implicit enumeration of the state space, can be efficiently exploited in the description of socio-economic interactions.
Keywords: Computational Economics, Rule-Based Modeling, Labor Market Dynamics
JEL Classification: C63, J01, J63
Suggested Citation: Suggested Citation