alt Hacker NewsAgent-based modeling offers a more realistic approach to economic systems than traditional equilibrium models. New approachs including generative agents (ABM+LLMs) are promising. J. Doyne Farmer's recent book "Making Sense of Chaos: A Better Economics for a Better World" is a great reading for those interested in this field.
https://www.amazon.com/Making-Sense-Chaos-author/dp/02412019...
Replies
airstrike • last Wednesday at 2:14 AM
Thanks for the link. If anyone has additional links, including scholarly references, this is an area of huge interest to me but I wouldn't know where to turn to for the latest research and models.
jgord • last Wednesday at 1:55 AM
stands to reason .. if we assume the actual economy is full of autonomous agents [ people, companies, governments ] acting largely in self interest.
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No. There is no macroeconomist who wouldn’t adopt these approaches if they were “better”.
Agent based models have been around since the 1980’s at least. No one uses them in central banks, no one uses them in industry, and you can be very confident that they’ve tried.