Handbook of Computational Economics - Volume 4, Heterogeneous Agent Modeling - Grand Format

Heterogeneity reflects the reality of our world. This handbook contains state of the art surveys of the new paradigm of heterogeneous agent models with boundedly rational interacting agents written by leading experts in the field. The handbook chapters combine theory, such as the micro-foundations of boundedly rational heterogeneous expectations, large scale agent-based models in macroeconomics, models of financial market micro structure, financial instability and contagion and models of heterogeneity in network formation.
These models are often validated with empirical results, for example from financial network data, as well as data from laboratory experiments with human subjects. Applications include macroeconomics, finance, electricity markets, regulatory macro prudential policy and stress testing models. This handbook belongs on the shelves of any academic researcher, student or policy maker, seeking more realistic models from a new behavioral alternative paradigm with heterogeneous agents in macro-financial modeling.