@techreport{Westerhoff2012Agent,
abstract = {With the help of two examples, we illustrate the usefulness of agent-based models as a tool for economic policy design. In our first example, we apply a financial market model in which the order flow of speculators, relying on technical and fundamental analysis, generates intricate price dynamics. In our second example, we apply a Keynesian-type goods market model in which the investment behavior of firms, relying on extrapolative and regressive predictors, generates complex business cycles. We add a central authority to these two setups and explore the impact of simple intervention strategies on the model dynamics. Based on these experiments, we conclude that agent-based models may help us to understand how markets function and to evaluate the effectiveness of various stabilization policies.},
address = {Bamberg},
author = {Frank Westerhoff and Reiner Franke},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
isbn = {978-3-943153-02-6},
keywords = {C63; D84; E32; G12; 330; Agent-based models; Economic policy design; Financial markets; Goods markets; Simulation analysis},
language = {eng},
number = {88},
publisher = {BERG},
title = {Agent-based models for economic policy design: Two illustrative examples},
type = {BERG Working Paper Series},
url = {http://hdl.handle.net/10419/66136},
year = {2012}
}
