Multi-Agent Systems as a Tool for Analyzing Path-Dependent Macrodynamics

Abstract

This paper discusses the concept of path dependence in macrodynamics, and identifies practical difficulties associated with building path-dependent macrodynamic models of the sort that Keynesians and Schumpeterians regard as necessary for the successful study of long-term growth and development. It is suggested that multi-agent systems (MAS) analysis can help address these difficulties, and therefore provides a useful tool for advancing path-dependent macrodynamic analysis. An illustrative example is provided in the form of a MAS model of path-dependent aggregate fluctuations.

Keywords: Multi-agent systems, agent based models, path dependence, macrodynamics

JEL Classification: B41, C63, E12, E32, E37, O41