Adam Smith and the Red Cross Parcel Economy

In this seminar, I’ll introduce Hamill & Gilbert’s book – in progress – “Agent-based Modelling in Economics”, which takes the themes presented in a standard undergraduate economic textbook and reworks them using agent-based modelling. I’ll then present the chapter about barter in an exchange economy, based on what happened in a Prisoner of War camp in the Second World War, often referred to as “The Red Cross Parcel Economy”. Using agent-based modelling to introduce dynamics into what is usually presented as a comparative static analysis, leads to interesting insights into Adam Smith’s “invisible hand”.

Monday, 5 November, 2012 - 12:30 to 14:00
Lynne Hamill