Towards an Agent-Based Model for the Analysis of Macroeconomic Signals

This work introduces an agent-based model for the analysis of macroeconomic signals. The Bottom-up Adaptive Model (BAM) deploys a closed Walrasian economy where three types of agents (households, firms and banks) interact in three markets (goods, labor and credit) producing some signals of interest, e.g., unemployment rate, GDP, inflation, wealth distribution, etc. Agents are bounded rational, i.e., their behavior is defined in terms of simple rules finitely searching for the best salary, the best price, and the lowest interest rate in the corresponding markets, under incomplete information. The markets define fixed protocols of interaction adopted by the agents. The observed signals are em…