Agent-based modeling is introduced as a bottom-up approach to understand the complex dynamics of social systems. Topics include the growth, entry and exit dynamics of firms, strategic interactions of firms in collaboration networks and the emergence of failure cascades and systemic risk in networks. The role of randomness, heterogeneity and network effects for economic dynamics is pointed out.

How do economies grow and occasionally tip into crisis? How does a technology spread, or a shock cascade through a production network? This course develops a unified toolkit for understanding economic dynamics and complexity. We study continuous and discrete systems, diffusion and contagion, endogenous cycles, and the structure and formation of economic networks.