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An ABM for Economics: Micro Explains Macro

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  • Luca Barone

    (University of Torino, Italy)

Abstract

The link between micro and macro level has always been difficult to trace, even when variables have strong homogeneous characteristics. What happens when heterogeneous components and random factors interact is even more difficult to define. By adopting an agent-based approach we found a result that does not reflects the classical methods of quantification of an economy. This can be interpreted as an alarm bell signaling a wrong description of the economic framework we want to explain. We illustrate the effectiveness of the "agent-based reasoning machine" and we derive a model to compare with classical methods of aggregation. A more comprehensible description of the model is given by "Unified Modeling Language (UML)" and "ODD standard protocol", allowing us to clarify the internal processes of our model.

Suggested Citation

  • Luca Barone, 2013. "An ABM for Economics: Micro Explains Macro," Working papers 016, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    • Handle: RePEc:tur:wpapnw:016
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    File URL: http://www.bemservizi.unito.it/repec/tur/wpapnw/m16.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Aggregation; NetLogo; Simulations; Micro-Macro link; Agent Based Models (ABMs); Unified Modeling Language (UML); ODD standard protocol;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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