Agent-Based Macroeconomics

Abstract

This chapter surveys work dedicated to macroeconomic analysis using an agent-based modeling approach. After a short review of the origins and general characteristics of this approach a systemic comparison of the structure and modeling assumptions of a set of important (families of) agent-based macroeconomic models is provided. The comparison highlights substantial similarities between the different models, thereby identifying what could be considered an emerging common core of macroeconomic agent-based modeling. In the second part of the chapter agent-based macroeconomic research in different domains of economic policy is reviewed.

Keywords: Agent-based Macroeconomics, Aggregation, Heterogeneity, Behavioral Rules, Business Fluctuations, Economic Policy

JEL Classification: C63, E17, E32, E70