This book offers a thorough introduction to the highly promising complex agent-based approach
to economics in which agent-based models (ABMs) are used to represent economic systems as
complex and evolving systems composed of heterogeneous agents of limited rationality who
interact with each other generating the system¿s emergent properties in the process. This
approach represents a response to the limitations of the dominant theory in economics which
does not consider the possibility of a major crisis and to the inability of dynamic stochastic
general equilibrium theory to generate empirically falsifiable propositions. In the new
perspective the focus is on identifying the elements of instability rather than the triggering
event. As the theory of complexity demonstrates the interactions of heterogeneous agents
produce non-linearity: this puts an end to the age of certainties. With ABMs the methodology
is ¿from the bottom up¿. The individual parameters and their distribution are estimated and
then evaluated to verify whether aggregate regularities emerge on the whole. In short not only
micro but also meso and macro empirical validation are employed. Moreover it shows that the
mantra of growth should be supplanted by the concept of a growth¿. Given its depth of coverage
the book will enable students at the undergraduate and Master¿s level to gain a firm grasp of
this important emerging approach. ¿This book is flower blossomed by one of the two greatest
Italian economists.¿ Bruce Greenwald Columbia University ¿The author¿s - the ABM prophet¿s -
thoughts on economics have been at the forefront of the world. Without a firm belief in and
dedication to human society it is impossible to write such a book. This is a work of high
academic value which can help readers quickly understand the history and current situation of
complex economic theory. In particular we can understand the basic viewpoints academic status
advantages and shortcomings of various schools of economic theory.¿ Jie Wu Guangzhou Milestone
Software Co. China
