Essays on Agent Based Models and the Emergence of Money

Abstract

Neo-Walrasian conceptualizations and DSGE models are incompatible with the emergence of coordination and discoordination in economic activity. While many conceptualizations stemming from the Austrian tradition are generally consistent with these fundamental prob- lems, their process driven approach is hampered by the use of equilibrium constructs. The first chapter argues for the adoption of formal models that avoid this problem by addressing the following questions. Why should Austrian macroeconomists model? Where do mod- els fit in with respect to pure and applied theory? How to model without equilibrium? To answer this final question I present a framework called Dynamic Coordinating Non- Equilibrium (DCNE) that aids in the construction and communication of macroeconomic agent based models.