Heterogeneous agent modeling

Front Cover -- Handbook of Computational Economics -- Copyright -- Contents -- Contributors -- Introduction to the Series -- Introduction to the Handbook of Computational Economics, Volume 4, Heterogeneous Agent Modeling -- 1 Introduction -- 2 Macroeconomics -- 3 Finance -- 4 Experiments -- 5 Networks -- 6 Other -- Acknowledgments -- References -- Part 1 Macroeconomics -- 1 Heterogeneous Expectations and Micro-Foundations in Macroeconomics -- 1 Introduction -- 2 Expectations Operators and Bounded Rationality -- 2.1 Expectations Operators -- 2.2 The Economic Environment -- 2.3 Bounded Optimality -- 2.3.1 Rational Expectations -- 2.3.2 The Shadow-Price Approach -- 2.3.3 The Shadow-Price Approach in the Linearized Model -- 2.3.4 The Euler Equation Approach in the Linearized Model -- 2.3.5 The Finite Horizon Approach in the Linearized Model -- 2.3.6 The In nite Horizon Approach in the Linearized Model -- 2.3.7 A Nod to Value Functions -- 2.3.8 A Defense of Anticipated Utility -- 2.4 Aggregating Household Decision Rules -- 3 Equilibria with Heterogeneous Expectations -- 3.1 Extrinsic Heterogeneity -- 3.2 Rationally Heterogeneous Expectations -- 3.2.1 Predictor Selection -- 3.2.2 Heterogeneous Beliefs and Economic Dynamics: Stability Reversal -- 3.3 Intrinsic Heterogeneity -- 4 Asset-Pricing Applications -- 4.1 Regime-Switching Returns -- 4.2 Bubbles with Rationally Heterogeneous Expectations -- 4.3 Restricted Perceptions and Endogenous Fluctuations -- 4.4 Related Literature -- 5 Monetary Applications -- 5.1 A Monetary Search Model with Heterogeneous Expectations -- 5.2 Heterogeneous Beliefs and Bargaining -- 5.3 Equilibrium with Heterogeneous Beliefs -- 5.4 Uncertainty and Welfare -- 5.5 Related Literature -- 6 DSGE Applications -- 6.1 Rationally Heterogeneous Expectations and Monetary Policy Rules