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Simulated Economy Tutorial

(jasonfantl.com)
105 points jfantl | 1 comments | 02 Apr 25 00:05 UTC | HN request time: 0.269s | source
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dlojudice ◴[02 Apr 25 01:42 UTC] No.43552972[source]▶
Agent-based modeling offers a more realistic approach to economic systems than traditional equilibrium models. New approachs including generative agents (ABM+LLMs) are promising. J. Doyne Farmer's recent book "Making Sense of Chaos: A Better Economics for a Better World" is a great reading for those interested in this field.

https://www.amazon.com/Making-Sense-Chaos-author/dp/02412019...

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huitzitziltzin ◴[02 Apr 25 02:30 UTC] No.43553188[source]▶
No. There is no macroeconomist who wouldn’t adopt these approaches if they were “better”.

Agent based models have been around since the 1980’s at least. No one uses them in central banks, no one uses them in industry, and you can be very confident that they’ve tried.

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dlojudice ◴[02 Apr 25 02:39 UTC] No.43553228[source]▶
Sure, they've tried but it does not mean it hasn't evolved

https://www.centralbanking.com/central-banks/economics/macro...

https://www.bankofengland.co.uk/working-paper/2025/agent-bas...

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noitpmeder ◴[02 Apr 25 04:13 UTC] No.43553618[source]▶
Sure, just don't necessarily sell them as "more realistic" if they're not performing as well in real situations
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1. littlestymaar ◴[02 Apr 25 22:24 UTC] No.43562417[source]▶
Its not like the classical models are any good in terms for performance in real situations, as they have proven to be unable to predict anything over the past 40 years better than a basic linear extrapolation from the trend would have.

Current macro-economics models are arguably not much better than a broken clock in terms of predicting power.