On the Role of Agent‐based Modeling in the Theory of Development Economics |
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| Authors: | Florian Chávez‐Juárez |
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| Affiliation: | Centro de Investigación y Docencia Económicas (CIDE), Mexico City, Mexico |
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| Abstract: | 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. |
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