Projection of a Heterogenous Agent-Based Production Economy Model to a Closed Dynamics of Aggregate Variables
Journal article, 2015

A model framework that describes a simple production economy is presented, in which the micro-dynamics can be projected to a closed dynamics of aggregate variables. The construction is based on an agent-based model with heterogeneity both regarding pro- duction characteristics and the strategies agents use to predict future prices as a basis for choosing what to produce. The world is divided into a number of regional markets that collect the locally produced goods and via inter-market trade supply regional demands with goods. We discuss the model features that make it possible to project the agent- based micro-dynamics to a closed form dynamics on the level of regionally aggregate quantities. One advantage of such a projection from a high dimensional agent-based dynamics to a low dimensional dynamical system is that the stability characteristics can be analytically approached, and this is illustrated by a derived condition for when a mix of naive and rational agents can stabilize the system. Some illustrations of the general framework in a model of global agricultural land-use are also given.

stability

agricultural land-use

aggregate dynamics

model projection

Agent-based model

Author

Kristian Lindgren

Chalmers, Energy and Environment, Physical Resource Theory

Emma Jonson

Chalmers, Energy and Environment, Physical Resource Theory

Liv Lundberg

Chalmers, Energy and Environment, Physical Resource Theory

Advances in Complex Systems

0219-5259 (ISSN)

Vol. 18 5-6 1550012-

Driving Forces

Sustainable development

Areas of Advance

Energy

Subject Categories

Economics

Roots

Basic sciences

DOI

10.1142/S0219525915500125

More information

Created

10/7/2017