The traditional operational optimization models of systematic technology adoption commonly assume the existence of a global social planner and ignore the existence of heterogeneous decision makers who interact with each other. This paper develops a stylized (or conceptual) optimization model of systematic technology adoption with heterogeneous agents (i.e., decision makers) and uncertain techno...

We assess the common practice of trying to learn about the sources of aggregate fluctuations using aggregate data and a representative agent framework. We take an offthe-shelf model with financial frictions and heterogeneity, and study the mapping from a credit crunch, modeled as a shock to collateral constraints, to simple aggregate wedges. We study three variants of this model that only diffe...

since the rate of return on different opportunities for investment is random, the optimal distribution of ones capital is put foreward as a stochastic control problem. in this paper, using modem techniques in the theory of random functions and the stochsatic calculus, the problem is discussed for the case when the information possessed by the different investors, as well as their probability be...

Powerful computational tools are becoming available to represent the behavior of complex systems. Agent-based modeling, in particular, facilitates an examination of the system-level outcomes of the heterogeneous actions of a set of heterogeneous agents: for example, patterns of land-use and land-cover change, such as urban sprawl as a result of residential location decisions. These new tools cr...

This paper presents an agent-based urban land market model. We first replace the centralized price determination mechanism of the monocentric urban market model with a series of bilateral trades distributed in space and time. We then run the model for agents with heterogeneous preferences for location. Model output is analyzed using a series of macro-scale economic and landscape pattern measure...

This paper introduces heterogeneous expectations into a New Keynesian model. Our primary theoretical contribution is to provide an aggregation result for a model with nominal rigidities and heterogeneous bounded rationality. We incorporate bounded rationality at the individual agent level and determine restrictions on expectations operators sufficient to imply aggregate IS and AS relations of t...

This paper studies the implications for business cycle dynamics of heterogeneous expectations in a stochastic growth model. The assumption of homogeneous, rational expectations is replaced with a heterogeneous expectations model where a fraction of agents hold rational expectations and the remaining fraction adopt parsimonious forecasting models that are, in equilibrium, optimal within a restri...