Agent-based Macroeconomics
The Schumpeter Meeting Keynes Models

The Element offers a new perspective on macroeconomics considering the economy as a complex evolving system.

Giovanni Dosi (Author), Andrea Roventini (Author)

9781009598743, Cambridge University Press

Hardback, published 29 May 2025

116 pages
23.5 x 16 x 1.2 cm, 0.32 kg

This Element is about agent-based macroeconomics in general, and in particular about a family of evolutionary, agent-based models (ABMs), which are called 'Schumpeter meeting Keynes' (or K+S). The K+S models knit together 'Schumpeterian' endogenous processes of innovation with 'Keynesian' mechanisms of demand generation. As with all well-constructed ABMs, the K+S models are populated by a multiplicity of agents which interact on the grounds of quite simple, empirically based, behavioural rules, whose collective outcomes are 'emergent properties' which cannot be imputed to the intention of any single agent. After the K+S model is empirically validated, the impacts of different combinations of innovation, industrial, fiscal, and monetary policies for different labour-market regimes and inequality scenarios are assessed. The Element offers a new perspective on macroeconomics considering the economy as a complex evolving system.

1. Introduction
2. A dismal short story of macroeconomics: from Robinson Crusoe to complex evolutionary economies
3. The emperor is still naked: the intrinsic limits of DSGE models
4. Macroeconomic agent-based models
5. The Schumpeter meeting Keynes model
6. Empirical validation
7. Policy experiments
8. A brief discussion on the future of macroeconomics by way of a conclusion
References.

Subject Areas: Economics [KC]