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On the Role of Agent‐based Modeling in the Theory of Development Economics
Author(s) -
ChávezJuárez Florian
Publication year - 2017
Publication title -
review of development economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.531
H-Index - 50
eISSN - 1467-9361
pISSN - 1363-6669
DOI - 10.1111/rode.12264
Subject(s) - complement (music) , economics , field (mathematics) , management science , experimental economics , positive economics , neoclassical economics , computer science , microeconomics , biochemistry , chemistry , mathematics , complementation , pure mathematics , gene , phenotype
In this article I discuss the potential role of agent‐based modeling techniques in development economics. Development economics has recently seen a strong rise of experimental evidence from the field and the laboratory. At the same time, there is a debate on how theory should adapt to this new approach and its findings. I argue in this paper that the agent‐based modeling approach is a promising complement to the traditional modeling techniques, as it can easily incorporate the non‐standard findings of the experimental literature. Moreover, I emphasize the opportunity of a mutually beneficial interplay between experiment‐based empirical research and agent‐based models.