This course provides a state of the art overview of complex economic systems with boundedly rational heterogeneous agents. The leading paradigm in macroeconomics assumes that economic agents (households, firms, investors) are perfectly rational in making their decisions. Experimental and empirical evidence indicate that this assumption is too demanding. A central question in the course will be: which emerging macro behavior arises through the interactions of micro decisions of boundedly rational heterogeneous agents and how can policy affect micro and macro behavior.
Topics:
- Animal spirits and boom and bust cycles
- Bounded rationality and adaptive learning
- Complex dynamics, tipping points, chaos and bifurcations
- Heterogeneous expectations in asset pricing and macroeconomic models
- Macro laboratory experiments
- Monetary policy and asset prices under bounded rationality
Literature:
C.H. Hommes (2013). Behavioral Rationality and Heterogeneous Expectations in Complex Economic Systems, Cambridge University Press,
C.H. Hommes (2020), Behavioral & experimental macroeconomics and policy analysis: a complex systems approach, Journal of Economic Literature, forthcoming
Course leader
Cars Hommes obtained his PhD in Mathematical Economics from the University of Groningen and is professor of Economic Dynamics at the University of Amsterdam. Hommes is one of the pioneers in Behavioural & Experimental Macroeconomics.
Target group
The summer course welcomes (research) master students, PhD students and post-docs with a quantitative background and who are interested in learning state-of-the art complex systems and behavioral macroeconomic modeling. We also welcome professionals from policy institutions such as central banks or international firms and institutions
Admission requirements
Some background in quantitative studies (mathematics, statistics, econometrics, engineering, etc.) and knowledge of dynamical systems is useful (at the level of a first year course in a Master study), but no formal background will be required.
Credits info: 3 EC
Participants who joined at least 80% of all sessions will receive a certificate of participation stating that the summer school is equivalent to a work load of 3 ECTS. Note that it is the student’s own responsibility to get these credits registered at their university.
Fee info
EUR 500: PhD and Master Students.
The fee covers tuition and course materials.
For more information click "LINK TO ORIGINAL" below.