We assess the effects of regulatory caps in the loan-to-value (LTV) ratio using agent-based models (ABMs). Our approach builds upon a straightforward ABM where we model the interactions of sellers, buyers and banks within a computational framework that enables the application of LTV caps. The...

Given that young children are under the control of their parents, if the government has an interest in either the welfare or the productivity of the former, it has no option but to act through the latter. Parents are, in the ordinary sense of the word, the government’s agents. They are agents...

The target zone model of Krugman (1991) has failed empirically. In this paper, we develop a model of the exchange rate with heterogeneous agents in a free floating and a target zone regime. We show that this simple model mimics the empirical puzzles of exchange rates: excessive volatility, fat...

This paper presents a multi-period agent-based model for the study of macro-financial effects related to the introduction of a retail Central Bank Digital Currency (CBDC). Calibrating it with aggregate statistics of the German retail payment market, we exemplify how the model can be used to...

Evacuation is one of the most effective strategies to reduce risk during natural disasters. Although many studies have investigated factors affecting evacuation decisions (e.g., socio-economic, risk forecast, demographic, environmental cues, etc.), how all these factors interplay in forming the...

This study incorporates the difference in agents' trading intervals into the heterogeneous agent model developed by Brock and Hommes (1998). We show that the effect of a longer investment horizon appears as a reduction in the fraction of the strategy adopted by long-term traders under the...

The literature on agent-based macroeconomics has grown substantially over the past decade. However, a typically small set of common features impedes an instructive comparison of model results and obscures the implications of specific model assumptions. While validation and model selection...

Individuals can be slow to update beliefs and may respond to new information in idiosyncratic ways. This paper shows how an individual’s under-reaction to new information (for example, due to lack of attention) and idiosyncratic ways of responding to new information (due to over-reaction or...

The current state of technology means people find themselves interacting with and having to trust artificial intelligent agents. However, despite the considerable history of trust studies, there is no agreement on what trust is and what this construct consists of. The study elaborates on the...