Modeling Aggregate Behavior and Fluctuations in Economics: Stochastic Views of Interacting Agents

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Modeling Aggregate Behavior and Fluctuations in Economics: Stochastic Views of Interacting Agents image
ISBN-10:

0521781264

ISBN-13:

9780521781268

Author(s): AOKI, Masanao
Edition: Illustrated
Released: Feb 04, 2002
Format: Hardcover, 280 pages
Related ISBN: 9780521606196

Description:

This book analyzes how a large but finite number of agents interact, and what sorts of macroeconomic statistical regularities or patterns may evolve from these interactions. By keeping the number of agents finite, the book examines situations such as fluctuations about equilibria, multiple equilibria and asymmetrical cycles of models which are caused by model states stochastically moving from one basin of attraction to another. All of these are not tractable using traditional deterministic modeling approaches. The book also discusses how agents may form clusters with stationary distributions of cluster sizes. These have important applications in analyzing volatilities of asset returns.

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