A Simple Model of Business Fluctuations with Heterogeneous Interacting Agents and Credit Networks

2016 ◽  
pp. 29-102
Author(s):  
Leonardo Bargigli ◽  
Alessandro Caiani ◽  
Luca Riccetti ◽  
Alberto Russo
Keyword(s):  
Simple Model ◽  
Business Fluctuations ◽  
Interacting Agents ◽  
Heterogeneous Interacting Agents

scholarly journals A new approach to business fluctuations: heterogeneous interacting agents, scaling laws and financial fragility

2005 ◽  
Vol 56 (4) ◽  
pp. 489-512 ◽  
Author(s):  
Domenico Delli Gatti ◽  
Corrado Di Guilmi ◽  
Edoardo Gaffeo ◽  
Gianfranco Giulioni ◽  
Mauro Gallegati ◽  
...  
Keyword(s):  
Scaling Laws ◽  
Financial Fragility ◽  
New Approach ◽  
Business Fluctuations ◽  
Interacting Agents ◽  
Heterogeneous Interacting Agents

BUBBLES AND CRASHES: OPTIMISM, TREND EXTRAPOLATION AND PANIC

2003 ◽  
Vol 06 (08) ◽  
pp. 829-837 ◽  
Author(s):  
FRANK WESTERHOFF
Keyword(s):  
Simple Model ◽  
Panic Attack ◽  
Temporal Correlation ◽  
Trading Rules ◽  
Special Mechanism ◽  
Interacting Agents ◽  
Heterogeneous Interacting Agents

The observation that large drawdowns are outliers suggests that a special mechanism may be responsible for large crashes. We develop a simple model with heterogeneous interacting agents which follow technical and fundamental trading rules to determine their orders. Although the chartists are optimistic most of the time, they panic if prices drop sharply. Our main finding is that the selling impact due to a panic attack may be so large that it directly leads to the next panic attack. Such behavior generates temporal correlation in prices, i.e., causes large drawdowns.

INTRODUCTION

2007 ◽  
Vol 11 (S1) ◽  
pp. 1-7
Author(s):  
ALAN KIRMAN
Keyword(s):  
Direct Interaction ◽  
Basic Feature ◽  
Simple Rule ◽  
Rule Following ◽  
Interacting Agents ◽  
Aggregate Behavior ◽  
Standard Models ◽  
Heterogeneous Interacting Agents

This issue contributes to the discussion of the relation between individual and aggregate behavior. The basic feature of all the models presented is that they allow for direct interaction between the individuals. This, it is shown, leads to a number of interesting phenomena that are difficult to account for in standard models. The basic message is that the inclusion of heterogeneous interacting agents allows us to escape from the pitfalls associated with the reduction to a representative individual and furthermore to show that aggregates will, in general, have behavior that is different from that of the component individuals. Lastly, complex aggregate behavior is not necessarily the result of complicated individual reasoning, it can emerge from very simple rule following by individuals.

scholarly journals Rational Heuristics? Expectations and Behaviors in Evolving Economies with Heterogeneous Interacting Agents

2020 ◽  
Author(s):  
Giovanni Dosi ◽  
Mauro Napoletano ◽  
Andrea Roventini ◽  
Joseph Stiglitz ◽  
Tania Treibich
Keyword(s):  
Interacting Agents ◽  
And Behaviors ◽  
Heterogeneous Interacting Agents

The Use of Agent-Based Financial Market Models to Test the Effectiveness of Regulatory Policies

2008 ◽  
Vol 228 (2-3) ◽  
Author(s):  
Frank H. Westerhoff
Keyword(s):  
Financial Markets ◽  
Regulatory Policy ◽  
Agent Based ◽  
Regulatory Policies ◽  
The Past ◽  
Interacting Agents ◽  
Trading Halts ◽  
Transaction Taxes ◽  
Central Bank Interventions ◽  
Heterogeneous Interacting Agents

SummaryModels with heterogeneous interacting agents have proven to be quite successful in the past. For instance, such models are able to mimic the dynamics of financial markets quite well. The goal of our paper is to explore whether this approach may offer new insights into the working of certain regulatory policies such as transaction taxes, central bank interventions and trading halts. Although this strand of research is rather novel, we argue that agent-based models may be used as artificial laboratories to improve our understanding of how regulatory policy tools function.

Book Reviews

2017 ◽  
Vol 55 (2) ◽  
pp. 644-647
Keyword(s):  
Agent Based Modeling ◽  
Agent Based Models ◽  
Agent Based ◽  
Practical Guide ◽  
Interacting Agents ◽  
Hamilton College ◽  
Heterogeneous Interacting Agents

Christophre Georges of the Department of Economics, Hamilton College reviews “Economics with Heterogeneous Interacting Agents: A Practical Guide to Agent-Based Modeling,” edited by Alessandro Caiani, Alberto Russo, Antonio Palestrini, and Mauro Gallegati. The Econlit abstract for this book begins: “Text for graduate and PhD students, as well as undergraduates with some knowledge of computers and economics comprises four papers emerging from a workshop on agent-based modeling held by the Dipartimento di Scienze Economiche e Sociali at the Università Politecnica delle Marche. Presents a guide to agent-based models (ABM) and the technicalities that need to be solved in order to evaluate the effect of different rules and their switching.”

scholarly journals RATIONAL HEURISTICS? EXPECTATIONS AND BEHAVIORS IN EVOLVING ECONOMIES WITH HETEROGENEOUS INTERACTING AGENTS

2020 ◽  
Vol 58 (3) ◽  
pp. 1487-1516 ◽  
Author(s):  
Giovanni Dosi ◽  
Mauro Napoletano ◽  
Andrea Roventini ◽  
Joseph E. Stiglitz ◽  
Tania Treibich
Keyword(s):  
Interacting Agents ◽  
And Behaviors ◽  
Heterogeneous Interacting Agents
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