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Keynesian And Neoclassical Closures In An Agent-Based Context

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  • Bill Gibson

    (University of Massachusetts Amherst)

Abstract

Since the "closure debate" of the 1980s it is well known that com- parative static derivatives in analytical macro models are highly sensitive to the closure rule selected. This led Keynesians to conclude that Keynesian closures were superior to those favored by the orthodoxy and vice-versa. It is argued that with the advent of agent-based or multi-agent systems, the clo- sure debate is superseded. While elements of both Keynesian and neoclassical models survive the transition to the more synthetic environment, an agent- based approach eliminates the need for drastic simplification that was at the root of the debate from the beginning.

Suggested Citation

  • Bill Gibson, 2008. "Keynesian And Neoclassical Closures In An Agent-Based Context," UMASS Amherst Economics Working Papers 2008-03, University of Massachusetts Amherst, Department of Economics.
    • Handle: RePEc:ums:papers:2008-03
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    File URL: http://www.umass.edu/economics/publications/2008-03.pdf
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    References listed on IDEAS

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    Cited by:

    1. Bill Gibson, 2012. "Trade, Employment and the Informal Sector: An Agent-based Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(2), pages 277-310, May.

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    Keywords

    Agent-based models; multi-agent systems; macroeconomic closure.;
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