Modelling the Experimentally Organized Economy (II)
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| Název: | Modelling the Experimentally Organized Economy (II) |
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| Autoři: | Eliasson, Gunnar |
| Zdroj: | International Journal of Microsimulation. 17(2):1-59 |
| Témata: | Adaptive expectations, Agent based macro modelling, Autonomous pricing, Calibration vs estimation, Economy wide market self-coordination, Entrepreneurial entry, Expectational feed backs, Experimentally Organized Economy (EOE), Integration of partial models, Mathematical simulation, Micro to Macro theory, Microsimulation, MIP targeting, Modular design, Panel database, Stockholm School Economics |
| Popis: | The Swedish micro to macro model MOSES is presented in terms of original technical publications and early empirical studies. It is shown how autonomous firms form expectations, make up plans, set prices, and revise plans after having been confronted with other firms’ plans in product, labor, and financial markets, and how all market agents together endogenously self-coordinate the macro economy, and keep it evolving over time. Agents learn from their expectational mistakes to improve next period anticipations and plans. Combined with endogenous Schumpeterian entrepreneurs that enter markets unexpectedly, this unique Stockholm School feature confers radically new dynamic properties to the macro economy. Entrepreneurial entry not only subjects the model economy to a constantly ongoing Creative Destruction process (endogenous structural change), but also keeps incumbent firms under constant competitive pressure that forces them to innovate preemptively, not to be competed out of the market (exit), and thus propels the economy forward in time, leaving in its wake an endogenous population of firms. A master version of the MOSES model has been calibrated to represent a Sweden like advanced industrial economy. The selection of publications also demonstrates how the modular design of the model has been gradually expanded, around its original dynamic market module, to become a model approximation of what I call an Experimentally Organized Economy (EOE) in which decisions of boundedly rational agents become economic experiments to be tested in markets. In fact, the model economy can even be used by boundedly rational policy makers, who should not conduct experiments, but fortunately can learn about the limits of their policy ambitions by practicing on the MOSES model. |
| Popis souboru: | |
| Přístupová URL adresa: | https://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-357937 |
| Databáze: | SwePub |
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Nájsť tento článok vo Web of Science | Abstrakt: | The Swedish micro to macro model MOSES is presented in terms of original technical publications and early empirical studies. It is shown how autonomous firms form expectations, make up plans, set prices, and revise plans after having been confronted with other firms’ plans in product, labor, and financial markets, and how all market agents together endogenously self-coordinate the macro economy, and keep it evolving over time. Agents learn from their expectational mistakes to improve next period anticipations and plans. Combined with endogenous Schumpeterian entrepreneurs that enter markets unexpectedly, this unique Stockholm School feature confers radically new dynamic properties to the macro economy. Entrepreneurial entry not only subjects the model economy to a constantly ongoing Creative Destruction process (endogenous structural change), but also keeps incumbent firms under constant competitive pressure that forces them to innovate preemptively, not to be competed out of the market (exit), and thus propels the economy forward in time, leaving in its wake an endogenous population of firms. A master version of the MOSES model has been calibrated to represent a Sweden like advanced industrial economy. The selection of publications also demonstrates how the modular design of the model has been gradually expanded, around its original dynamic market module, to become a model approximation of what I call an Experimentally Organized Economy (EOE) in which decisions of boundedly rational agents become economic experiments to be tested in markets. In fact, the model economy can even be used by boundedly rational policy makers, who should not conduct experiments, but fortunately can learn about the limits of their policy ambitions by practicing on the MOSES model. |
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| ISSN: | 17475864 |
| DOI: | 10.34196/ijm.00291 |