Cars Hommes co-author of prize winning paper
This competition is part of the ‘Rebuilding Macroeconomics’ project that seeks new interdisciplinary approaches to the study of complexity, macroeconomics, and research policy in this area.
"Rebuilding Macroeconomics" (RM) is a research initiative funded by the UK’s Economic and Social Research Council and was founded in 2017. RM is hosted by the Institute for Global Prosperity, University College London.
In their paper "Economic Forecasting with an Agent-based Model", Sebastian Poledna (International Institute for Applied Systems Analysis, Austria), Michael Miess (Vienna University of Economics and Business, Austria) and Cars Hommes present the first agent-based model (ABM) that can compete with benchmark VAR and DSGE models in out-of-sample forecasting of macro variables. Potential applications of the model include stress-testing and predicting the effects of changes in monetary, fiscal, or other macroeconomic policies.
The full paper can be read or downloaded on the Rebuilding Economics website.