Computational economics

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Computational economics is a research discipline at the interface between computer science and economic and management science.^[1] Areas encompassed include agent-based computational modeling,^[2] computational modeling of dynamic macroeconomic systems and transaction costs, other applications in mathematical economics,^[3] computational econometrics and statistics,^[4] computational finance, computational tools for the design of automated Internet markets, programming tools specifically designed for computational economics, and pedagogical tools for the teaching of computational economics. Some of these areas are unique to computational economics, while others extend traditional areas of economics by solving problems that are difficult to study without the use of computers. ^[5]

Computational economics researchers use computational tools both for computational economic modeling and for the computational solution of analytically and statistically formulated economic problems. An important example is agent-based computational economics (ACE) is the computational study of economic processes modeled as dynamic systems of interacting agents. Here "agent" refers broadly to a bundle of data and behavioral methods representing an entity constituting part of a computationally constructed world. Agents can represent social, biological, and/or physical entities. Starting from initial conditions determined by the modeler, an ACE model develops forward through time driven solely by agent interactions.^[6]

Computational solution tools include for example software for carrying out various matrix operations (e.g. matrix inversion) and for solving systems of linear and nonlinear equations. For a repository of public-domain computational solution tools, visit here.

The following journals specialize in computational economics: Computational Economics^[1], Journal of Applied Econometrics^[7],Journal of Economic Dynamics and Control, and the Journal of Economic Interaction and Coordination^[8].

Notes

1. ^ ^{a b} "Computational Economics". springer.com. 2011 [last update]. http://www.springer.com/economics/economic+theory/journal/10614. Retrieved October 31, 2011. 
2. ^ Scott E. Page, 2008. "agent-based models," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
3. ^ The New Palgrave Dictionary of Economics, 2008. 2nd Edition:
     • "computation of general equilibria" by Herbert E. Scarf. Abstract.
     • "computation of general equilibria (new developments)" by Felix Kubler. Abstract.
     • "computer science and game theory" by Joseph Y. Halpern. Abstract.
     • "numerical optimization methods in economics" by Karl Schmedders. Abstract.
4. ^ • Vassilis A. Hajivassiliou (2008). "computational methods in econometrics," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
     • Keisuke Hirano (2008). "decision theory in econometrics," The New Palgrave Dictionary of Economics, 2nd Edition. Abstract.
5. ^ • Hans M. Amman, David A. Kendrick, John Rust, ed., 1996. Handbook of Computational Economics, v. 1. Description & chapter-preview links.
     • Kenneth Judd, 1998. Numerical Methods in Economics, MIT Press. Links to description and chapter previews.
6. ^ Leigh Tesfatsion and Kenneth Judd, ed., 2006. Handbook of Computational Economics, v. 2. Description & and chapter-preview links.
7. ^ "Journal of Applied Econometrics - Wiley Online Library". onlinelibrary.wiley.com. 2011 [last update]. http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1255. Retrieved October 31, 2011. 
8. ^ "Journal of Economic Interaction and Coordination". springer.com. 2011 [last update]. http://www.springer.com/economics/economic+theory/journal/11403. Retrieved October 31, 2011. 

References

External links

• Society for Computational Economics
• Journal of Economic Dynamics and Control - publishes articles on computational economics
• Agent-Based Computational Economics - maintained by Leigh Tesfatsion
• The Use of Agent-Based Models in Regional Science - a study on agent-based models to simulate urban agglomeration
• Computational Economics with Python - a series of lectures
• Computational Finance and Economic Agents
• Journal of Economic Interaction and Coordination - official journal of the Association of Economic Science with Heterogeneous Interacting Agents