Agent-based Computational Economics News & Articles

Selected news and articles about research and developments in Agent-based Computational Economics:

1 Aug 16 - Online course "Introduction to Agent-Based Modeling"
Complexity Explorer starts its course "Introduction to Agent-Based Modeling". Complexity Explorer is an education project of the Santa Fe Institute and provides online courses and other educational materials related to complex systems science.

2 Jun 15 - Institute for New Economic Thinking launches Agent Based Modeling Working Group
The renowned Institute for New Economic Thinking (founded in 2009 by George Soros and others as a result of the global financial crisis) has launched an Agent Based Modeling Working Group to model complex economic systems from the bottom-up. It recognizes the economy as a complex adaptive system and tries to capture this complexity in agent based computational models. The working group offers online lectures from experts, hands-on online modeling projects and a support network.

15 Oct 14 - Defining Agent-based Models
In this blog post, Zachary David points out a lively discussion about what Agent-based Models are (not) and how they are (not) related to Dynamic Stochastic General Equilibrium models. This discussion recently took place in the blogosphere and includes contributions from some renowned experts. (We link to this particular post as it gives a concise briefing of the discussion with the relevant links on top).

18 Apr 14 - Effects of High-Frequency Trading on asset price dynamics
In their working paper "Rock around the Clock: An Agent-Based Model of Low- and High-Frequency Trading" the authors use an agent-based model to study the effects of HFT on asset price dynamics. They conclude that HFT increases volatility and contributes to flash crashes. Also see this interesting commentary from Themis Trading in their blog.

15 Jul 13 - Why the Future of Innovation is Simulation
Computer simulations are increasingly being used in applications such as marketing, weather forecasts, politics and logistic processes. Contrary to traditional approaches based on strategic analysis, computer simulation allows testing thousands of different scenarios in a virtual environment based on real world data for relatively low costs.
Full article from Forbes

8 Apr 13 - Realistic vs. "elegant" models
According to Mark Buchanan, Agent-based Computational Economics is showing promise in providing more realistic models than the traditional "elegant" models based on representative rational agents. For instance, a study into the causes of the housing boom and subsequent collapse of recent years used an agent-based model to simulate the behavior of over 2 million homeowners, capturing effects that traditional models did not.
Full article from Bloomberg
Mark Buchanan's blog: The Physics of Finance

21 Dec 12 - Using agent-based models for analyzing threats to financial stability
A working paper by Richard Bookstaber from the Office of Financial Research of the US Treasury Department describes how agent-based models can help understanding potential vulnerabilities and risks in the financial system.

11 Jun 12 - Agent-based Computational Economics - a recent overview

A special issue of The Knowledge Engineering Review provides an excellent overview of the field of Agent-based Computational Economics by surveying nine recent papers, some of which presenting new findings in several areas of application. One of the covered papers (Chen et al. 2012) focuses on Agent-based Computational Finance and forecasting.

21 Sep 11 - Recent advances in the field

Two events took place recently that illustrate some advances and promising results in Agent-based Computational Economics. Among these are coordinated efforts to develop standards for the description, specification and validation of agent-based models to help establishing common structures in the field that may facilitate more communication and comparison between different models. Also, ACE simulations are now increasingly used to test theoretical models or to investigate their properties when analytical solutions are not possible and more attention is going towards usage by policy-makers.
- GSDP Agent-based modeling workshop (8-10 September 2011, Paris)
- Artificial Economics 2011 Conference (1-2 September 2011, The Hague)

31 Jan 11 - Simulating worst-case scenarios

Johns Hopkins University has launched the Center for Advanced Modeling (CAM) in the Social, Behavioral and Health Sciences. The center, led by professor Joshua Epstein, is aimed at research and applied work in the field of agent-based modeling for simulations that could help predict how societies will react to disasters such as infectious disease outbreaks, natural disasters or economic turmoil.
Full article from Johns Hopkins Gazette

22 Jul 10 - Agents of change: Conventional economic models failed to foresee the financial crisis. Could agent-based modeling do better?
Policy makers and advisors question the use of conventional economic models by the FED and other central banks for national economic policy and discuss the possibilities for using large-scale agent-based models for understanding and predicting financial crises.
Full article from The Economist

3 Dec 09 - New software to simulate future financial crises
New simulation software from the EU-funded EURACE research project aims to predict future banking crises or other economic turmoil. The software applies simulation technology called FLAME (Flexible Large-scale Agent Modeling Environment) to predict the interaction between large populations of different economic actors such as consumers, companies and banks. The software is meant to enable better testing of a government policy's effects on the economy while still on the drawing board.
Full article from

6 Aug 09 - The economy needs agent-based modeling
According to J. Doyne Farmer and Duncan Foley (The New School for Social Research), economic policy-makers should use agent-based models instead of flawed econometric models that are fitted to past data or dynamic stochastic general equilibrium models that assume a perfect world.
Full article from Nature



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