LeBaron, Blake; Tesfatsion, Leigh

American Economic Review Vol. 98 no. 2 (2008): 246-250.

This study discusses the potential applicability of Agent-based Computational Economics (ACE) for macroeconomic modeling, with a particular stress on the following three issues: (1) taxonomy - what types of agents for macroeconomic models?; (2) scale robustness - how many agents for macroeconomic models?; and (3) empirical validation - connecting to data. Annotated pointers to ACE macroeconomic research can be accessed here: http://www.econ.iastate.edu/tesfatsi/amulmark.htm

JEL Classification: B4, C6, C7, D, E

Keywords: agent-based computational economics, Macroeconomic modeling, Agent taxonomy, Scale robustness, Empirical validation