Size Effects in Agent-Based Macroeconomic Models: An Initial Investigation

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Chen, Shu-Heng; Kao, Ying-Fang; Chie, Bin-Tzong; Meyer, Timo and Venkatachalam, Ragupathy. 2017. Size Effects in Agent-Based Macroeconomic Models: An Initial Investigation. In: Utomo Sarjono Putro; Manabu Ichikawa and Manahan Siallagan, eds. Agent-Based Approaches in Economics and Social Complex Systems IX. 15 Post-Proceedings of The AESCS International Workshop 2015: Springer. ISBN 978-981-10-3661-3 [Book Section]

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Official URL: http://link.springer.com/chapter/10.1007/978-981-1...

Abstract or Description

We investigate the scale-free property of an agent-based macroeconomic model initially proposed by Wright (2005), called the Social Architecture (SA) model. The SA model has been shown to be able to replicate a number of important features of a macroeconomy, such as patterns concerning economic growth, business cycles, industrial dynamics and income distribution. We explore whether macroeconomic stylized features resulting from this model are robust when the number of agents populating the (model) economy vary. We simulate the model by systematically varying the agent population with 100, 500, 1000, 2,000, 4,000, 8,000 and 10,000 agents. Our results indicate that the SA model does exhibit significant size effects for several important variables.

Item Type:

Book Section

Identification Number (DOI):

https://doi.org/10.1007/978-981-10-3662-0_11

Additional Information:

The first and the last author are grateful for the research support in the form of the Ministry of Science and Technology (MOST) Grants, MOST 103-2410-H-004-009-MY3 and MOST 104-2811-H-004-003, respectively.

Print ISBN - 978-981-10-3661-3
Online ISBN - 978-981-10-3662-0
Series Print ISSN - 1861-0803

Keywords:

Maximum Entropy Principle, Size Effect, Agent-Based Macroeconomic Model, Circular Flow

Departments, Centres and Research Units:

Institute of Management Studies
Institute of Management Studies > Structural Economic Analysis

Dates: