New Economics Papers
on Computational Economics
Issue of 2005‒03‒06
four papers chosen by

  1. Agent-Based Modelling: A Methodology for Neo-Schumpeterian Economics By Andreas Pyka; Giorgio Fagiolo
  2. Computing integral solutions of complementarity problems By Laan,Gerard van der; Talman,Dolf; Yang,Zaifu
  3. Understanding Preferences For Income Redestribution By Chih Ming Tan; Louise C. Keely
  4. Continuous Time Model Estimation By Carl Chiarella; Shenhuai Gao

  1. By: Andreas Pyka (University of Augsburg, Department of Economics); Giorgio Fagiolo (Laboratory of Economics and Management, Pisa (Italy))
    Abstract: Modellers have had to wrestle with an unavoidable trade-off between the demand of a general theoretical approach and the descriptive accuracy required to model a particular phenomenon. A new class of simulation models has shown to be well adapted to this challenge, basically by shifting outwards this trade-off: So-called agent-based models (ABMs henceforth) are increasingly used for the modelling of socio-economic developments. Our paper deals with the new requirements for modelling entailed by the necessity to focus on qualitative developments, pattern formation, etc. which is generally highlighted within Neo-Schumpeterian Economics and the possibilities given by ABMs.
    Keywords: Simulation, Neo-Schumpeterian Economics, Agents
    JEL: B52 O30
    Date: 2005–02
  2. By: Laan,Gerard van der; Talman,Dolf; Yang,Zaifu (Tilburg University, Center for Economic Research)
    Abstract: In this paper an algorithm is proposed to find an integral solution of (nonlinear) complementarity problems. The algorithm starts with a nonnegative integral point and generates a unique sequence of adjacent integral simplices of varying dimension. Conditions are stated under which the algorithm terminates with a simplex one of whose vertices is an integral solution of the complementarity problem under consideration.
    JEL: C61 C62 C68 C72
    Date: 2005
  3. By: Chih Ming Tan; Louise C. Keely
    Abstract: Recent research suggests that income redistribution preferences vary across identity groups. We employ a new pattern recognition technology, tree regression analysis, to uncover what these groups are. Using data from the General Social Survey, we present a new stylized fact that preferences for governmental provision of income redistribution vary systematically with race, gender, and class background. We explore the extent to which existing theories of income redistribution can explain our results, but conclude that current approaches do not fully explain the findings.
  4. By: Carl Chiarella (School of Finance and Economics, University of Technology, Sydney); Shenhuai Gao (School of Economics and Political Science, University of Sydney)
    Abstract: This paper introduces an easy to follow method for continuous time model estimation. It serves as an introduction on how to convert a state space model from continuous time to discrete time, how to decompose a hybrid stochastic model into a trend model plus a noise model, how to estimate the trend model by simulation, and how to calculate standard errors from estimation of the noise model. It also discusses the numerical difficulties involved in discrete time models that bring about the unit roots illusion in econometrics.
    Keywords: Continuous time model; Estimation; Trend and noise decomposition; Unit roots illusion
    JEL: C13 C22 C32 C51
    Date: 2004–12–01

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