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Agent-Based Modeling in Economics and Finance: Past, Present, and Future

Robert L. Axtell & J. Doyne Farmer

Journal of Economic Literature2025https://doi.org/10.1257/jel.20221319article
AJG 4ABDC A*
Weight
0.78

What the paper says

Agent-based modeling (ABM) is a novel computational methodology for representing the behavior of individuals in order to study social phenomena. Its use is rapidly growing in many fields. We review ABM in economics and finance and highlight how it can be used to relax conventional assumptions in standard economic models. ABM has enriched our understanding of markets, industrial organization, labor, macro, development, public policy, and environmental economics. In financial markets, substantial accomplishments include understanding clustered volatility, market impact, systemic risk, and housing markets. We present a vision for how ABMs might be used in the future to build more realistic models of the economy and review some of hurdles that must be overcome to achieve this. (JEL C63, D00, E00, G00)

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https://doi.org/https://doi.org/10.1257/jel.20221319

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@article{robert2025,
  title        = {{Agent-Based Modeling in Economics and Finance: Past, Present, and Future}},
  author       = {Robert L. Axtell & J. Doyne Farmer},
  journal      = {Journal of Economic Literature},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1257/jel.20221319},
}

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Agent-Based Modeling in Economics and Finance: Past, Present, and Future

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Evidence weight

0.78

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact1.00 × 0.4 = 0.40
M · momentum1.00 × 0.15 = 0.15
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.