Description
Agent-based Macroeconomics presents a comprehensive framework for understanding modern economies through the lens of agent-based modeling (ABM). By combining Schumpeterian innovation dynamics with Keynesian demand-driven theories, Dosi and Roventini show how heterogeneous agents with bounded rationality interact to produce emergent macroeconomic outcomes.
The models explore how technological change, business cycles, unemployment, and financial instability arise from the bottom-up interactions of firms and consumers. Rather than assuming perfect rationality and equilibrium, the approach captures realistic features like skill heterogeneity, investment under uncertainty, and adaptive behavior. The book demonstrates that agent-based models can explain stylized facts of modern capitalism that traditional macroeconomic theory struggles to address.
This Element provides essential reading for economists seeking alternatives to mainstream frameworks and those interested in computational economics and evolutionary approaches to understanding capitalism’s dynamics.
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