Agent-based modeling in the tradition of the Austrian school


mises.png
mises.png
mises.png
mises.png

Philosophy

This website is about the development of economic models. These models integrate Austrian economics with aspects of evolutionary and post-Keynesian economics. The models are permanently in disequilibrium and yet they are so general as to encompass an entire economy. Thus, an economic paradigm is developed that provides an alternative to neoclassical and new-Keynesian thought. This paradigm also advances our understanding of the Austrian literature.

Simulations

The models take on the form of computer simulations. They are programmed in the Java® language. The simulations describe how, in general, an economy would evolve given a specification of preferences, technology, and institutions. All economic activity in those models is driven by decentralized actions of agents. The agents apply standard account rules to their actions. The emergent properties of the system can thus be understood via the national accounting framework.

Documentation

The main building blocks of the model are an accounting system, a framework for the description of capital structures, and certain reaction algorithms that enable the agents to pursue their goals, viz. to satisfy their desires and to maximize profits. Yet, no agent in this model has perfect information and can actually attain such a maximum. Rather, the agents are in a permanent process of try and error and they apply algorithms of procedural rationality to improve their situations.