Complexity Macroeconomics: An Agent Based Model

Abstract

This study aims to present a baseline agent-based macroeconomic model developed in line with the core arguments that complexity economics brings, particularly to the field of macroeconomics. In contrast to the structure of standard macroeconomic models, which are built upon representative agents, rational expectations, and equilibrium assumptions, this study foregrounds macroeconomic dynamics that emerge from the direct interactions of agents who have heterogeneous characteristics at the micro level and operate with bounded rationality. The economic actors in the model assess their environmental conditions based on limited information and shape their decisions within the framework of heuristic behavioral rules. Within this context, markets are conceptualized as self-organizing and evolutionarily developing structures that arise from complex agent interactions, without the necessity of reaching a predefined equilibrium state. The findings demonstrate that it is possible to construct a framework that enables aAmore realistic, dynamic, and inclusive understanding of the economic system, moving beyond classical equilibrium-based approaches. This indicates that complexity economics may offer aAmore functional framework for analyzing irregular and non-stationary processes, particularly during periods of crisis and uncertainty.