Computational Economics: Heterogeneous Agent Modeling

Handbook of Computational Economics: Heterogeneous Agent Models, Volume Four, focuses on heterogeneous agent models, emphasizing recent advances in macroeconomics (including DSGE), finance, empirical validation and experiments, networks and related applications. Capturing the advances made since the publication of Volume Two (Tesfatsion & Judd, 2006), it provides high-level literature with sections devoted to Macroeconomics, Finance, Empirical Validation and Experiments, Networks, and other applications, including Innovation Diffusion in Heterogeneous Populations, Market Design and Electricity Markets, and a final section on Perspectives on Heterogeneity.

Helps readers fully understand the dynamic properties of realistically rendered economic systemsEmphasizes detailed specifications of structural conditions, institutional arrangements and behavioral dispositionsProvides broad assessments that can lead researchers to recognize new synergies and opportunities

Introduction: Why heterogeneity? Cars Hommes and Blake LeBaron

Macroeconomics 1. Bounded Rationality and Heterogeneous Agents in Macroeconomics: Microfoundations William Branch and Bruce McGough 2. Agent-based Macroeconomics (including policy & innovation) Herbert Dawid and Domenico Delli Gatti 3. Firm Dynamics Robert Axtell 4. Heterogeneous agents in the Macroeconomy: Reduced-heterogeneity representations Xavier Ragot

Finance 5. Heterogeneous Agent Models in Finance Xue-Zhong (Tony) He and Roberto Dieci 6. Leverage Cycles Doyne Farmer 7. Market Microstructure Jean-Philippe Bouchaud

Empirical validation and experiments 8. Empirical Validation of Heterogeneous Agent Models Thomas Lux and Remco Zwinkels 9. Experimental Macroeconomics Jasmina Arifovic and John Duffy 10. Experimental Games Rosemarie Nagel and Felix Mauersberger

Networks 11. Complex Financial Networks Giulia Iori and Rosario N. Mantegna 12. Economic and Social Networks Sanjeev Goyal

Other Applications 13. Market Design and Electricity Markets Leigh Tesfatsion

Perspectives on heterogeneity 14. Modeling a Heterogeneous World Alan Kirman and Rick Bookstaber