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

We investigate the scale-free property of an agent-based macroeconomic model initially proposed by Wright (Physica A, 346:589–620, 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...

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Bibliographic Details
Published inAgent-Based Approaches in Economics and Social Complex Systems IX Vol. 15; pp. 137 - 152
Main Authors Chen, Shu-Heng, Kao, Ying-Fang, Chie, Bin-Tzong, Meyer, Timo, Venkatachalam, Ragupathy
Format Book Chapter
LanguageEnglish
Published Singapore Springer Singapore Pte. Limited 2017
Springer Singapore
SeriesAgent-Based Social Systems
Subjects
Agent-based macroeconomic model
Circular flow
Economic systems
Knowledge management
Maximum entropy principle
Research & development management
Size effect
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Summary:We investigate the scale-free property of an agent-based macroeconomic model initially proposed by Wright (Physica A, 346:589–620, 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 varies. We simulate the model by systematically varying the agent population with 100, 500, 1,000, 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.
ISBN:9811036616
9789811036613
ISSN:1861-0803
DOI:10.1007/978-981-10-3662-0_11