Many of the factors responsible for the financial crisis (financial

innovation and securitization; heterogeneity of agents, markets

and regulatory frameworks) are, by and large, overlooked by

standard macroeconomic models which have failed to forecast

the advent of the crisis and are unable to restore economic

growth.

Agent-based and computational models depart from the

representative agent paradigm, thereby introducing heterogeneity

of agents' characteristics and behavior, and allowing for

markets that do not clear. These models are better equipped to

analyze the salient features of out-of-equilibrium paths and

provide novel insights on required economic policy during crises.

This volume gathers contributions of leading scholars working

on agent-based and computational models. It demonstrates how

these models have reached the point where they can guide

macro- and micro-economic policy.