Java Agent-based MacroEconomic Laboratory

Jamel: Java Agent-based MacroEconomic Laboratory

What I cannot create, I do not understand.

Richard Feynman (1988)

Jamel (Java Agent-based Macro-Economic Laboratory) is an open source agent-based framework dedicated to the modeling, the simulation and the analysis of complex monetary economies. It is developped by Dr. P. Seppecher (CEPN, University of Paris 13, France), Dr. I. Salle (University of Amsterdam and Utrecht School of Economics, The Netherlands) and Dr. H. Hagedorn (Business and Information Technology School, Berlin, Germany).

The latest version of Jamel (20160509) is available as a downloadable application. It contains the companion baseline simulation of the paper "Is the market indeed a good teacher? Market selection, collective adaptation and financial instability" (2016).

Modeling and Analysis of Complex Monetary Economies

The task group International Macroeconomics and Post-Keynesian Analyses of the CEPN is happy to announce the third workshop:

Modeling and Analysis of Complex Monetary Economies



Must-Read on Brad DeLong's blog, available at <HAL-01314335>:

Is the market really a good teacher?

Market selection, collective adaptation
and financial instability

Pascal Seppecher, Isabelle Salle, Dany Lang
28th April 2016

Abstract: This paper proposes to model market mechanisms as a collective learning process for firms in a complex adaptive system, namely Jamel, an agent-based, stock-flow consistent macroeconomic model. Inspired by Alchian's (1950) "blanketing shotgun process" idea, our learning model is an ever-adapting process that puts a significant weight on exploration vis-à-vis exploitation. We show that decentralized market selection allows firms to collectively adapt their overall debt strategies to the changes in the macroeconomic environment so that the system sustains itself, but at the cost of recurrent deep downturns. We conclude that, in complex evolving economies, market processes do not lead to the selection of optimal behaviors, as the characterization of successful behaviors itself constantly evolves as a result of the market conditions that these behaviors contribute to shape. Heterogeneity in behavior remains essential to adaptation in such an ever-changing environment. We come to an evolutionary characterization of a crisis, as the point where the evolution of the macroeconomic system becomes faster than the adaptation capabilities of the agents that populate it, and the so far selected performing behaviors suddenly cease to be, and become instead undesirable.

Keywords: Evolutionary economics, Learning, Firms' adaptation, Business cycles.

JEL classification codes: B52, C63, D83, E32.

Last updated: 2016-12-04