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Home | People | Cars Hommes
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Cars Hommes

Research Fellow

University
University of Amsterdam
Research field
Complexity
Interests
Behavioral Economics, Bounded Rationality, Experimental Economics

Biography

Cars Hommes obtained his PhD in Mathematical Economics from the University of Groningen and is professor of Economic Dynamics at the University of Amsterdam, UvA. In 1998 he obtained a prestigious Pionier-grant from the Netherlands Organization of Scientific Research (NWO) to start the Center for Nonlinear Dynamics in Economics and Finance (CeNDEF), an interdisciplinary research group on complex systems applications in economics and finance. Throughout his career he held visiting positions at University of Wisconsin, Stanford University and New York University.

Cars is well known for his influential work with William Brock (Econometrica 1997 and JEDC 1998), developing a behavioral theory of heterogeneous expectations and its applications to economics and finance.

Key publications

List of publications

Hommes, C. and Makarewicz, T. (2021). Price level versus inflation targeting under heterogeneous expectations: a laboratory experiment Journal of Economic Behavior and Organization, 182:39--82.

Hommes, C. (2021). Behavioral and experimental macroeconomics and policy analysis: A complex systems approach Journal of Economic Literature, 59(1):149--219.

in 't Veld, D., van der Leij, M. and Hommes, C. (2020). The formation of a core-periphery structure in heterogeneous financial networks Journal of Economic Dynamics and Control, 119:.

Hommes, C., Kopanyi-Peuker, A. and Sonnemans, J. (2020). Bubbles, crashes and information contagion in large-group asset market experiments Experimental Economics, :.

Bao, T., Hennequin, M., Hommes, C. and Massaro, D. (2020). Coordination on bubbles in large-group asset pricing experiments Journal of Economic Dynamics and Control, 110:.

Goy, G., Hommes, C. and Mavromatis, K. (2020). Forward guidance and the role of central bank credibility under heterogeneous beliefs Journal of Economic Behavior and Organization, :.

Cornea-Madeira, A., Hommes, C. and Massaro, D. (2019). Behavioral Heterogeneity in U.S. Inflation Dynamics Journal of Business and Economic Statistics, 37(2):288--300.

Bao, T. and Hommes, C. (2019). When speculators meet suppliers: Positive versus negative feedback in experimental housing markets Journal of Economic Dynamics and Control, 107:.

Assenza, T., Heemeijer, P., Hommes, C. and Massaro, D. (2019). Managing self-organization of expectations through monetary policy: A macro experiment Journal of Monetary Economics, :.

Diks, C., Hommes, C. and Wang, J. (2019). Critical slowing down as an early warning signal for financial crises? Empirical Economics, 57(4):1201--1228.

Anufriev, M., Hommes, C. and Makarewicz, T. (2019). Simple Forecasting Heuristics that Make us Smart: Evidence from Different Market Experiments Journal of the European Economic Association, 17(5):1538–1584.

Jump, R.C., Hommes, C. and Levine, P. (2019). Learning, heterogeneity, and complexity in the New Keynesian model Journal of Economic Behavior and Organization, 166:446--470.

Hommes, C. and Lustenhouwer, J. (2019). Inflation targeting and liquidity traps under endogenous credibility Journal of Monetary Economics, 107:48--62.

Hommes, C. and Vroegop, J. (2019). Contagion between asset markets: A two market heterogeneous agents model with destabilising spillover effects Journal of Economic Dynamics and Control, 100:314--333.

Bolt, W., Demertzis, M., Diks, C., Hommes, C. and van der Leij, M. (2019). Identifying booms and busts in house prices under heterogeneous expectations Journal of Economic Dynamics and Control, 103:234--259.

Hommes, C. and Lustenhouwer, J. (2019). Managing unanchored, heterogeneous expectations and liquidity traps Journal of Economic Dynamics and Control, 101:1--16.

Arifovic, J., Hommes, C. and Salle, I. (2019). Learning to believe in simple equilibria in a complex OLG economy - evidence from the lab Journal of Economic Theory, 183:106--182.

Hommes, C., Massaro, D. and Weber, M. (2019). Monetary policy under behavioral expectations: Theory and experiment European Economic Review, 118:193--212.

Hommes, C., Massaro, D. and Salle, I. (2019). Monetary and Fiscal Policy Design at the Zero Lower Bound: Evidence from the Lab Economic Inquiry, 57(2):1120--1140.

Hommes, C. (2018). Carl's nonlinear cobweb Journal of Economic Dynamics and Control, 91:7--20.

Hommes, C., Lustenhouwer, J. and Mavromatis, K. (2018). Fiscal consolidations and heterogeneous expectations Journal of Economic Dynamics and Control, 87:173--205.

Bao, T., Hommes, C. and Makarewicz, T. (2017). Bubble formation and (in)efficient markets in learning-to-forecast and optimise experiments Economic Journal, 127(605):F581--F609.

Assenza, T., Brock, W. and Hommes, C. (2017). Animal spirits, heterogeneous expectations and the amplification and duration of crises Economic Inquiry, 55(1):542--564.

Hommes, C., Makarewicz, T., Massaro, D. and Smits, T. (2017). Genetic algorithm learning in a New Keynesian macroeconomic setup Journal of Evolutionary Economics, 27(5):1133–1155.

Hommes, C. and in ‘t Veld, D. (2017). Booms, busts and behavioural heterogeneity in stock prices Journal of Economic Dynamics and Control, 80:101--124.

da Gama Batista, J., Massaro, D., Bouchaud, J., Challet, D. and Hommes, C. (2017). Do investors trade too much?: A laboratory experiment Journal of Economic Behavior and Organization, 140:18--34.

Agliari, A., Hommes, C. and Pecora, N. (2016). Path dependent coordination of expectations in asset pricing experiments: a behavioral explanation Journal of Economic Behavior and Organization, 121:15--28.

Hommes, C. and Iori, G. (2015). Introduction special issue crises and complexity Journal of Economic Dynamics and Control, 50:1--4.

Hommes, C. (2015). [Review of: (2014) Rethinking housing bubbles: the role of household and bank balance sheets in modeling economic cycles] Journal of Economic Psychology, 50:138--142.

Hommes, C. (2015). Journal of Economic Dynamics & Control (vol. 50, issue Special Issue Crisis & Complexity, January 2015) Journal of Economic Dynamics and Control, 50(Special Issue Crisis & Complexity, January 2015):.

Assenza, T., Grazzini, J., Hommes, C. and Massaro, D. (2015). PQ strategies in monopolistic competition: some insights from the lab Journal of Economic Dynamics and Control, 50:62--77.

Hommes, C. and Zhu, M. (2014). Behavioral learning equilibria Journal of Economic Theory, 150:778--814.

Hommes, C. and Zeppini, P. (2014). Innovate or imitate? Behavioural technological change Journal of Economic Dynamics and Control, 48:308--324.

Hommes, C. (2014). A reply to Rosser and Kirman Journal of Economic Methodology, 21(3):317--321.

Anufriev, M., Hommes, C. and Philipse, R. (2013). Evolutionary selection of expectations in positive and negative feedback markets Journal of Evolutionary Economics, 23(3):663--688.

Hommes, C. and Lux, T. (2013). Individual expectations and aggregate behavior in learning-to-forecast experiments Macroeconomic Dynamics, 17(2):373--401.

Anufriev, M., Assenza, T., Hommes, C. and Massaro, D. (2013). Interest Rate Rules and Macroeconomic Stability under Heterogeneous Expectations Macroeconomic Dynamics, 17(8):1574--1604.

Bao, T., Duffy, J. and Hommes, C. (2013). Learning, forecasting and optimizing: an experimental study European Economic Review, 61:186--204.

Hüsler, A., Sornette, D. and Hommes, C. (2013). Super-exponential bubbles in lab experiments: evidence for anchoring over-optimistic expectations on price Journal of Economic Behavior and Organization, 92:304--316.

Hommes, C. (2013). Reflexivity, expectations feedback and almost self-fulfilling equilibria: economic theory, empirical evidence and laboratory experiments Journal of Economic Methodology, 20(4):406--419.

Heemeijer, P., Hommes, C., Sonnemans, J. and Tuinstra, J. (2012). An experimental study on expectations and learning in overlapping generations models Studies in Nonlinear Dynamics and Econometrics, 16(4):.

Hommes, C., Kiseleva, T., Kuznetsov, Y. and Verbic, M. (2012). Is more memory in evolutionary selection (de)stabilizing? Macroeconomic Dynamics, 16(3):335--357.

Anufriev, M. and Hommes, C. (2012). Evolutionary selection of individual expectations and aggregate outcomes in asset pricing experiments American Economic Journal: Microeconomics, 4(4):35--64.

Hommes, C. and Ochea, M. (2012). Multiple equilibria and limit cycles in evolutonary games with Logit Dynamics Games and Economic Behavior, 74(1):434--441.

Bao, T., Hommes, C., Sonnemans, J. and Tuinstra, J. (2012). Individual expectations, limited rationality and aggregate outcomes Journal of Economic Dynamics and Control, 36(8):1101--1120.

Hommes, C. (2011). The heterogeneous expectations hypothesis: Some evidence from the lab Journal of Economic Dynamics and Control, 35(1):1--24.

Hommes, C. and Wagener, F. (2010). Does eductive stability imply evolutionary stability? Journal of Economic Behavior and Organization, 75(1):25--39.

Brock, W., Hommes, C. and Wagener, F. (2009). More hedging instruments may destabilize markets Journal of Economic Dynamics and Control, 33(11):1912--1928.

Gardini, L., Hommes, C., Tramontana, F. and de Vilder, R. (2009). Forward and backward dynamics in implicitly defined overlapping generations models Journal of Economic Behavior and Organization, 71(2):110--129.

Heemeijer, P., Hommes, C., Sonnemans, J. and Tuinstra, J. (2009). Price stability and volatility in markets with positive and negative expectations feedback: an experimental investigation Journal of Economic Dynamics and Control, 33(5):1052--1072.

Gaunersdorfer, A., Hommes, C. and Wagener, F. (2008). Bifurcation routes to volatility clustering under evolutionary learning Journal of Economic Behavior and Organization, 67(1):27--47.

Diks, C., Hommes, C., Panchenko, V. and van der Weide, R. (2008). E&F Chaos: a user friendly software package for nonlinear economic dynamics Computational Economics, 32(1-2):221--244.

Hommes, C., Sonnemans, J., Tuinstra, J. and van de Velden, H. (2008). Expectations and bubbles in asset pricing experiments Journal of Economic Behavior and Organization, 67(1):116--133.

Hommes, C., Sonnemans, J., Tuinstra, J. and van de Velden, H. (2007). Learning in cobweb experiments Macroeconomic Dynamics, 11(S1):8--33.

Boswijk, H., Hommes, C. and Manzan, S. (2007). Behavioral heterogeneity in stock prices Journal of Economic Dynamics and Control, 31(6):1938--1970.

Brock, W., Dindo, P. and Hommes, C. (2006). Adaptive rational equilibrium with forward looking agents International Journal of Economic Theory, 2(3-4):241--278.

Chiarella, C., He, X. and Hommes, C. (2006). A dynamic analysis of moving average rules Journal of Economic Dynamics and Control, 30(9-10):1729--1753.

Hommes, C. and Manzan, S. (2006). Comments on 'Testing for nonlinear structure and chaos in economic time series' Journal of Macroeconomics, 28:169--174.

Brock, W., Hommes, C. and Wagener, F. (2005). Evolutionary dynamics in markets with many trader types Journal of Mathematical Economics, 41(1/2):7--42.

Hommes, C., Sonnemans, J., Tuinstra, J. and van de Velden, H. (2005). Coordination of expectations in asset pricing experiments Review of Financial Studies, 18(3):955--980.

Hommes, C., Huang, H. and Wang, D. (2005). A robust rational route to randomness in a simple asset pricing model Journal of Economic Dynamics and Control, 29(6):1043--1072.

Hommes, C., Sonnemans, J., Tuinstra, J. and van de Velden, H. (2005). A strategy experiment in dynamic asset pricing Journal of Economic Dynamics and Control, 29(4):823--843.

Sonnemans, J., Hommes, C., Tuinstra, J. and van de Velden, H. (2004). The instability of a heterogeneous cobweb economy: a strategy experiment on expectation formation Journal of Economic Behavior and Organization, 54(4):453--481.

Droste, E., Hommes, C. and Tuinstra, J. (2002). Endogenous Fluctuations under Evolutionary Pressure in Cournot competition Games and Economic Behavior, 40:232--269.

Hommes, C.H. (2001). Financial markets as nonlinear adaptive evolutionary systems Quantitative Finance, 1(1):149--167.

Hommes, C. and Rosser Jr, J.B. (2001). Consistent expectations equilibria and complex dynamics in renewable resource markets Macroeconomic Dynamics, 5:180--203.

Hommes, C. (2001). Financial markets as complex adaptive evolutionary systems Quantitative Finance, 1:149--167.

Hommes, C. (2001). Bookreview: Nonlinear Dynamics. A primer [Review of: A. Medio, M. Lines (2001) Nonlinear Dynamics. A primer] De Economist, 152:.

Dechert, W. and Hommes, C. (2000). Complex Nonlinear Dynamics and Computational Methods Journal of Economic Dynamics and Control, 24:651--662.

Goeree, W. and Hommes, C. (2000). Heterogeneous beliefs and the non-linear cobweb model Journal of Economic Dynamics and Control, 24:761--798.

Hommes, C. (1999). Book review: Economic Dynamics. Phase diagrams and their economic application [Review of: Economic Dynamics. Phase diagrams and their economic application] De Economist, 147:.

Goeree, J., Hommes, C. and Weddepohl, H. (1998). Stability and complex dynamics in a discrete tatonnement model Journal of Economic Behavior and Organization, 33:395--410.

Hommes, C. (1998). On the consistency of backward looking expectations. The case of the cobweb Journal of Economic Behavior and Organization, 33:333--362.

Brock, W. and Hommes, C. (1998). Heterogeneous beliefs and routes to chaos in a simple asset pricing model Journal of Economic Dynamics and Control, 22:1235--1274.

Hommes, C. and Sorger, G. (1998). Consistent Expectations. Equilibria Macroeconomic Dynamics, 2:287--321.

Feichtinger, G., Hommes, C. and Milik, A. (1997). Chaotic consumption patterns in a simple 2-D addiction model. Economic Theory, 10:147--173.

Brock, W. and Hommes, C. (1997). A rational route to randomness Econometrica, 65:1059--1095.

Hommes, C. (1996). Book review: Chaotic dynamics. Theory and applications to economics [Review of: A. Medio. Chaotic dynamics. Theory and applications to economics] De Economist, 144(4):.

Hommes, C. and van Eekelen, A. (1996). Partial equilibrium analysis in a noisy chaotic market. Economics Letters, 53:275--282.

Hommes, C., Nusse, H. and Simonovits, A. (1995). Cycles and chaos in a socialist economy Journal of Economic Dynamics and Control, 19:155--179.

Hommes, C. (1995). A reconsideration of Hicks' non-linear trade cycle model Structural Change and Economic Dynamics, 6:435--459.

Hommes, C. (1994). Dynamics of the cobweb model with adaptive expectations and non-linear supply and demand Journal of Economic Behavior and Organization, 24(3):315--335.

Hommes, C. (1994). Cobweb dynamics under bounded rationality Journal of Economic Behavior and Organization, 24(3):315--336.

Hommes, C. (1993). Book review: Chaos and order in the capital markets. A new view of cycles, prices andmarket volatility [Review of: E.E. Peters. Chaos and order in the capital markets. A new view of cycles, prices andmarket volatility] De Economist, 141(4):.

Hommes, C. (1993). Periodic, almost periodic and chaotic dynamics in Hicks' nonlinear trade cycle Economics Letters, 41(4):391--397.

Hommes, C. (1993). Periodic, almost periodic and chaotic dynamics in Hicks nonlinear trade cycle model Economics Letters, 41:391--397.

Hommes, C. (1991). Adaptive learning and roads to chaos: the case of the cobweb Economics Letters, 36(2):127--132.

Hommes, C. and Nusse, H. (1991). 'Period three to period two' bifurcation for piecewise linear models Journal of Economics, 54:157--169.

Nusse, H.E. and Hommes, C.H. (1990). Resolution of chaos with application to a modified Samuelson model Journal of Economic Dynamics and Control, 14(1):1--19.

Hommes, C. and Nusse, H. (1989). Does an unstable Keynesian unemployment equilibrium in a non-Walrasian dynamic macromodel imply chaos? The Scandinavian Journal of Economics, 91:161--167.