Interesting piece of work proposed on agent level modelling of the economy. No surprise this comes from a physics and systems dynamics guy.
Interesting one to watch.
Here is my posted comment:
I’m surprised no-one has had a go at this already. Not surprised that this has come from a physics and dynamic systems person.
I’ve been looking a little at economic systems interrelationhips, utilising causal diagrams, just to get a feel for the causes and effects, and feedback that can occur in an economy and the inherent complexity(notionally of any size), initially in the context of business improvement behaviour. DF is right on the assumptions one has to make when you get to modelling individual ‘transactions’, whether linear or non-linear, but I’m sure this level of modelling will yield more insight than the traditional macro-level models. Initially, it gets us to ask the right sort of questions.
The nature of complex systems is inherently chaotic e.g. a perturbation in the behaviour of one small agent (input) can, under particular conditions, trigger a large significant outcome. Of course we see this in real cases.
I look forward to seeing some interesting work.