The old models failed us, and so we need new ones. That's the thinking of Doyne Farmer, professor at the Santa Fe Institute. Farmer says macro models led some to believe that a 20% drop in housing prices would not have much effect. So he is collecting data to build an "agent based model" of the housing crisis. The aim is to then build an agent based model of the global economic crisis. Farmer is doing this work with the help of a grant from the Institute for New Economic Thinking, and he explains his work in this INET interview:
Posted
10-12-2011 9:28 AM
by
Graham Griffith
Filed under: global economic crisis, global economic crisis and housing prices, housing crisis, macroeconomic models, institute for new economic thinking, predicting, santa fe institute, behavior, agent based models, macroeconomic policy, doyne farmer, models