%0 Journal Article %1 chen:1999:SC %A Chen, Shu-Heng %A Yeh, Chia-Hsuan %D 1999 %J Soft Computing - A Fusion of Foundations, Methodologies and Applications %K Pareto-superior agent-based algorithms, bounded computational economics, equilibrium generations genetic models, overlapping programming, rationality, %N 3 %P 53--62 %R doi:10.1007/s005000050053 %T Modeling the expectations of inflation in the OLG model with genetic programming %V 3 %X genetic programming (GP) is employed to model learning and adaptation in the overlapping generations model, one of the most popular dynamic economic models. Using a model of inflation with multiple equilibria as an illustrative example, we show that our GP-based agents are able to coordinate their actions to achieve the Pareto-superior equilibrium (the low-inflation steady state) rather than the Pareto inferior equilibrium (the high-inflation steady state). We also test the robustness of this result with different initial conditions, economic parameters, GP control parameters, and the selection mechanism. We find that as long as the survival-of-the-fittest principle is maintained, the evolutionary operators are only secondarily important. However, once the survival-of-the-fittest principle is absent, the well-coordinated economy is also gone and the inflation rate can jump quite wildly. To some extent, these results shed light on the biological foundations of economics.

@article{chen:1999:SC, abstract = {genetic programming (GP) is employed to model learning and adaptation in the overlapping generations model, one of the most popular dynamic economic models. Using a model of inflation with multiple equilibria as an illustrative example, we show that our GP-based agents are able to coordinate their actions to achieve the Pareto-superior equilibrium (the low-inflation steady state) rather than the Pareto inferior equilibrium (the high-inflation steady state). We also test the robustness of this result with different initial conditions, economic parameters, GP control parameters, and the selection mechanism. We find that as long as the survival-of-the-fittest principle is maintained, the evolutionary operators are only secondarily important. However, once the survival-of-the-fittest principle is absent, the well-coordinated economy is also gone and the inflation rate can jump quite wildly. To some extent, these results shed light on the biological foundations of economics.}, added-at = {2008-06-19T17:35:00.000+0200}, author = {Chen, Shu-Heng and Yeh, Chia-Hsuan}, biburl = {https://www.bibsonomy.org/bibtex/20499b1e81f021db32557f80e20ff0c40/brazovayeye}, doi = {doi:10.1007/s005000050053}, interhash = {517026983f88401fa8d1ae9730e20728}, intrahash = {0499b1e81f021db32557f80e20ff0c40}, issn = {1432-7643}, journal = {Soft Computing - A Fusion of Foundations, Methodologies and Applications}, keywords = {Pareto-superior agent-based algorithms, bounded computational economics, equilibrium generations genetic models, overlapping programming, rationality,}, month = {September}, number = 3, pages = {53--62}, timestamp = {2008-06-19T17:37:43.000+0200}, title = {Modeling the expectations of inflation in the {OLG} model with genetic programming}, volume = 3, year = 1999 }