Empirical research indicates that learning-by-doing may be one of the main causes of falling production costs. A number of authors like Arrow, Fudenberg and Tirole, Dasgupta and Stiglitz, have focused on the theoretical implications of learning-by-doing. However, a complete framework...

Agent-based computational economics (ACE) combines elements from economics and computer science. In this paper, we focus on the relation between the evolutionary technique that is used and the economic problem that is modeled. In the field of ACE, economic simulations often derive parameter...

Our general goal in this paper is to show how to implement in GAMS standard deterministic nonlinear macro models, and stochastic linear macro models with rational expectations. We will also present basic concepts on solution methods and policy analysis for these kinds of models. As a practical...

This chapter discusses the widely used control model in economics, the Linear Quadratic Control Model (LQCM).The major advantage of LQCM is that it has, in general, a unique analytical solution. However, this is not necessarily true when dealing with forward-looking behavior or stochastic...

The analysis of economywide models is a particularly demanding topic in economics since it involves the study of interdependence. It implies a move to the realm of multiple heterogeneous agents, sectors and institutions interacting in complex ways. While there are some analytical methods and...

This paper, and its accompanying programs, provide a practical introduction to macroeconomic policy analysis methods and show how to implement in DUALI deterministic and stochastic simulations with standard and rational expectations models. The analysis of the general properties of dynamic...