The computational experiment: an econometric tool
Article Abstract:
Computational experiments can be effectively used in quantitative aggregate economic theory. The five key steps involved in computational experiments are: well-posed questions, usage of a widely-accepted theory, construction of a model economy, analysis of a model economy, and experiment execution. The method is useful for appraising the quantitative effects of trade liberalization policies, welfare implications of the alteration in the tax system, and in evaluating the fluctuations of business cycles.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1996
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Progress in behavioral game theory
Article Abstract:
A behavioral game theory, which attempts to explain how actual economic behavior is influenced by empirical observation, is described. It has three steps, namely, starting the game with a bold prediction, explaining unexpected behavior and incorporating the explanations. The three categories of modelling principles include games as social allocations, requirements of choice and judgement and games as strategic situations.
Publication Name: Journal of Economic Perspectives
Subject: Economics
ISSN: 0895-3309
Year: 1997
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