Behavioral Rationality and Heterogeneous Expectations in Complex Economic Systems

Behavioral Rationality and Heterogeneous Expectations in Complex Economic Systems


Recognising that the economic system is a posh process with boundedly rational interacting brokers, the ebook offers a conception of behavioral rationality and heterogeneous expectancies in complicated financial structures and confronts the nonlinear dynamic types with empirical stylized proof and laboratory experiments. The complexity modeling paradigm has been strongly endorsed because the overdue Eighties by means of a few economists and via multidisciplinary scientists from a variety of fields, similar to physics, laptop technology and biology. extra lately the complexity view has additionally drawn the eye of coverage makers, who're confronted with complicated phenomena, abnormal fluctuations and surprising, unpredictable marketplace transitions. The complexity instruments - bifurcations, chaos, a number of equilibria - mentioned during this publication can help scholars, researchers and coverage makers to construct extra lifelike behavioral types with heterogeneous expectancies to explain monetary industry hobbies and macro-economic fluctuations, in an effort to greater deal with crises in a fancy international economic system.

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