What is a computing economy?

Computational Economics is an advanced research area in which economists use computing tools to solve analytical problems and predictions or modeling comprehensive interactions of many agents in the financial market. In a non -linear dynamic system, such as the financial market, it will find numerical solutions for multilateral problems in public financing, games and macroeconomics. Through the construction of virtual economies systems, scientists can expand their understanding of observed laws, standards and possible behavior in these systems in the real world. On the other hand, formulas and algorithms that come purely from economic reasoning rarely correlate with reality. Many software packages of computing economics with pre -programmed optimization routines, such as Gauss or Conopt, allow economists to expand computer skills and generate economic problems.

The computing economy that constructs models of economic processes using solid initial conditions determined by the researcher, but then evolved based on the interaction of various independent factors or agents. Agents can be physical entities such as weather or biological entities such as livestock or crops. Agents can also consist of individuals such as consumers or institutions such as the main market. Scientists will select a specific set of agents for the formulation based on the problem studied.

several critical goals are managed by the computing economy. Some scientists seek to evaluate the performance of the system of given processes, organizations or politicians practically before they are introduced to ensure that the results are socially advantageous. They represent a number of agents such as consumers, manufacturers, regulatory agencies and other relevant factors, all with private motivations and learningabilities, and allow these agents to interact practically and develop over time. The main question that scientists are trying to answer is whether the strategic behavior of one of the agents can bring an unfair advantage, inefficiency or disorder in the system. In this way, scientists can identify shortcomings in politics, plan or system before implementation.

Another objective of the computing economy is to identify regularity and formulas in the economic system, which at first glance may seem quite random. Scientists try to explain the observed regularities by monitoring the repeating patterns of interaction between agents. Using computer simulations, economists were able to recognize repeating patterns in business cycles, market procedures and business networks. Progress in methodology in programming, statistical analysis and visualization has been widely used by the ability of computational economists to understand economic phenomena and generate theories about what causes them.