Rigor and flexibility: the benefits of agent-based computational economics

Abstract:

The development of agent-based computational economics (ACE) has been driven by two main goals: rigor and flexibility. ACE combines the principles of economics and mathematics with powerful high performance computer simulation to develop agent-based models for the economy. This combination gives ACE a unique capacity to help policy makers design effective solutions to complex economic problems. In this blog post, we will provide an overview of ACE, its history, and how it can be used to benefit policy design.