Simulation, computation and dynamics in economics

Abstract

Computation and Simulation have always played a role in economics -whether it be pure economic theory or any variant of applied, especially policy-oriented, macro-and microeconomics or what has increasingly come to be called empirical or experimental economics. Computations and simulations are also intrinsically dynamic. This triptychcomputation, simulation and dynamic -is given natural foundations, mainly as a result of developments in the mathematics underpinnings in the potentials of computing, using digital technology. A running theme in this essay is the recognition that, increasingly, the development of economic theory seems to go hand in hand with advances in the theory and practice of computing, which is, in turn, a catalyst for the move away from too much reliance on any kind of mathematics for the formalisation of economic entities that is inconsistent with the mathematical, methodological and epistemological foundations of the theory of computation.

Segregation with social linkages: Evaluating Schelling’s model with networked individuals

“…The dimensionality of the problem requires the model to be solved by simulation (Axelrod, 2013; Velupillai & Zambelli, 2015). The basic elements of the model, described in Section 3, are articulated through computation and mimic a process that, given basic exogenous conditions (i.e., the spatial dimension, the density of agents, the relative share of the two populations) and the social context (Akerlof & Kranton, 2000), begin with agents’ moving choices and ends to the determination of stable equilibria, corresponding to a certain level of individual and social utility and of racial residential segregation.…”

Segregation with Social Linkages: Evaluating Schelling's Model with Networked Individuals

“…The dimensionality of the problem requires the model to be solved by simulation (Axelrod, 2013;Velupillai and Zambelli, 2015). The basic elements of the model, described in Section 2, are articulated through computation 9 and mimic a process that, given basic exogenous conditions (i.e.…”

Segregation with Social Linkages: Evaluating Schelling's Model with Networked Individuals

“…The dimensionality of the problem requires the model to be solved by simulation (Axelrod, 2013;Velupillai & Zambelli, 2015). The basic elements of the model, described in Section 3, are articulated through computation 9 and mimic a process that, given basic exogenous conditions (i.e., the spatial dimension, the density of agents, the relative share of the two populations) and the social context (Akerlof & Kranton, 2000), begin with agents' moving choices and ends to the determination of stable equilibria, corresponding to a certain level of individual and social utility and of racial residential segregation.…”