Computational Economics: Heterogeneous Agent Modeling - 1st Edition - ISBN: 9780444641311, 9780444641328

Computational Economics: Heterogeneous Agent Modeling

1st Edition

Editors: Cars Hommes Blake LeBaron
eBook ISBN: 9780444641328
Hardcover ISBN: 9780444641311
Imprint: North Holland
Published Date: 19th June 2018
Page Count: 834
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Table of Contents

Introduction: Why heterogeneity?

  Cars Hommes and Blake LeBaron


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


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


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


Handbook of Computational Economics: Heterogeneous Agent Modeling, 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.

Key Features

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


Graduate students and professors worldwide studying quantitative economic methods and their applications


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© North Holland 2018
North Holland
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Ratings and Reviews

About the Editors

Cars Hommes Editor

Cars Hommes is one of the pioneers in complexity economics. His work on nonlinear complex economic systems challenges the traditional neoclassical paradigm of the representative rational agent in economics. In a rational world the economy is characterized by an average agent (consumer, producer, investor, etc.), who is a perfect optimizer with rational expectations about the future. Hommes' work develops an alternative complexity paradigm based on agent-based behavioral complexity models.He has published more than 100 articles in leading international journals and book chapters and he is the author and editor of four books. He has been Editor of the Journal of Economic Dynamics and Control (2002-2012) and is the president elect of the international Society of Computational Economics.

Affiliations and Expertise

Amsterdam School of Economics, University of Amsterdam, The Netherlands

Blake LeBaron Editor

Blake LeBaron has a Ph.D. in Economics from the University of Chicago. He is the Abram L. and Thelma Sachar Chair of International Economics at the International Business School, Brandeis University. He is a Research Associate at the National Bureau of Economic Research, and was a Sloan Fellow. LeBaron also served as director of the Economics Program at The Santa Fe Institute in 1993. LeBaron's research has concentrated on the issue of nonlinear behavior of financial and macroeconomic time series. He has been influential both in the statistical detection of nonlinearities and in describing their qualitative behavior in many series. LeBaron's current interests are in understanding the quantitative dynamics of interacting systems of adaptive agents and how these systems replicate observed real world phenomenon. Also, LeBaron is interested in understanding some of the observed behavioral characteristics of traders in financial markets. This behavior includes strategies such as technical analysis and portfolio optimization, along with policy questions such as foreign exchange intervention. In general, he seeks to find out the empirical implications of learning and adaptation as applied to finance and macroeconomics.

Affiliations and Expertise

Brandeis University, USA