Conventional, neoclassical economics assumes perfectly rational agents (firms, consumers,
investors) who face well-defined problems and arrive at optimal behaviour consistent with …

As the total value of the global financial market outgrew the value of the real economy,
financial institutions created a global web of interactions that embodies systemic risks …

Agent-based modeling (ABM) is a novel computational methodology for representing the
behavior of individuals in order to study social phenomena. Its use is rapidly growing in …

The paper moves from a discussion of the challenges posed by the crisis to standard
macroeconomics and the solutions adopted within the DSGE community. Although several …

As we discuss in the first chapter, this book was the product of serendipity—the two of us
finding ourselves on a flight together and discovering how closely our views meshed. Of …

This paper serves as an introduction to many of the themes that follow; it provides a
framework for complexity economics. Complexity economics builds on the proposition that …

This valuable text provides a comprehensive introduction to VAR modelling and how it can
be applied. In particular, the author focuses on the properties of the Cointegrated VAR …

Macroeconomic modelling has been under intense scrutiny since the Great Financial Crisis,
when serious shortcomings were exposed in the methodology used to understand the …

Recognising that the economy is a complex system with boundedly rational interacting
agents, the book presents a theory of behavioral rationality and heterogeneous expectations …

This is an extensively revised and updated version of a book that was originally published in
2007. In addition to bringing the text up to date in a rapidly changing region, there are …