Agent-based computational economics and African modeling:perspectives and challenges

Nwaobi, Godwin (2011): Agent-based computational economics and African modeling:perspectives and challenges.

Abstract

In recent years, the government, of African Countries has assumed major responsibilities for economic reforms and growth. In attempting to describe their economies, economists (policymakers) in many African Countries have applied certain models that are by now widely known: Linear programming models, input-output models, macro-econometric models, vector auto regression models and computable general equilibrium models. Unfortunately, economies are complicated systems encompassing micro behaviors, interaction patterns and global regularities. Whether partial or general in scope, studies of economic systems must consider how to handle difficult real-world aspects such as asymmetric information, imperfect competition, strategic interaction, collective learning and multiple equilibria possibility. This paper therefore argues for the adoption of alternative modeling (bottom-up culture-dish) approach known as AGENT-BASED Computational Economics (ACE), which is the computational study of African economies modeled as evolving systems of autonomous interacting agents. However, the software bottleneck (what rules to write for our agents) remains the primary challenge ahead.

• Item Type: MPRA Paper
• Language: English
• Keywords: artificial intelligence; computational laboratory; complex networks; multi-agent systems; agent-base computational economics; social networks; macro-econometric model; linear programming; input-output; vector auto regression; ace models; var models; neural networks; gene networks; derivatives; financial contagion; Africa economies; aceges models; energy
• Subjects: C - Mathematical and Quantitative Methods > C9 - Design of Experiments; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling; C - Mathematical and Quantitative Methods > C0 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B4 - Economic Methodology; C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; C - Mathematical and Quantitative Methods > C4 - Econometric and Statistical Methods: Special Topics; D - Microeconomics > D5 - General Equilibrium and Disequilibrium; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables; C - Mathematical and Quantitative Methods > C8 - Data Collection and Data Estimation Methodology ; Computer Programs; C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables

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