Agent-based Modelling in Economics

By Lynne Hamill and Nigel Gilbert

Published by John Wiley & Sons, Ltd in 2016. Print ISBN: 9781118456071;

Online ISBN: 9781118945520; DOI: 10.1002/9781118945520

New methods of economic modelling have been sought as a result of the global economic downturn in 2008. This unique book highlights the benefits of an agent–based modelling (ABM) approach. It demonstrates how ABM can easily handle complexity: heterogeneous people, households and firms interacting dynamically. Unlike traditional methods, ABM does not require people or firms to optimise or economic systems to reach equilibrium. ABM offers a way to link micro foundations directly to the macro situation.

Key features:

Introduces the concept of agent-based modelling and shows how it differs from existing approaches.
Provides a theoretical and methodological rationale for using ABM in economics, along with practical advice on how to design and create the models.
Each chapter starts with a short summary of the relevant economic theory and then shows how to apply ABM.
Explores both topics covered in basic economics textbooks and current important policy themes; unemployment, exchange rates, banking and environmental issues.
Describes the models in pseudocode, enabling the reader to develop programs in their chosen language.

Agent-based Modelling in Economics provides students and researchers with the skills to design, implement, and analyse agent-based models. Third year undergraduate, master and doctoral students, faculty and professional economists will find this book an invaluable resource.

The models

All the models have been designed to be run using NetLogo version 5.2, which can be downloaded from here: https://ccl.northwestern.edu/netlogo/download.shtml.
To download the model files below, you may need to right-click on the filename and select the Save option.

Chapter 2 Starting Agent-based Modelling

Models: Market

Chapter 3: Heterogeneous Demand

Models:

Distribution of household budgets

Utility function-based demand

Practical demand model

Chapter 4: Social Demand

Models:

Social circles

Threshold

Phone adoption

Chapter 5: Benefits of Barter

Models:

Edgeworth Box game

Edgeworth Box random

Red Cross Parcels

Chapter 6: The Market

Models:

Cournot-Nash

Shops

Digital world

Chapter 7: Labour Market

Models:

Wage distribution

Job search

Guildford labour market

Chapter 8: International Trade

Model: International trade

Chapter 9: Banking

Model: Banking

Chapter 10: The Tragedy of the Commons

Models:

Carrying capacity

Meadow management

Licencing

These programs are free software: you can redistribute them and/or modify them under the terms of version 3 of the GNU General Public License published by the Free Software Foundation. These programs are distributed in the hope that they will be useful, but WITHOUT ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. Those wishing to make commercial use of a program should contact Lynne Hamill or Nigel Gilbert to discuss terms.

The book is available to buy worldwide:

From Amazon UK and all other Amazon sites.
iTunes
Google
Or direct from Wiley Europe and other Wiley sites.