Computational Methods in Economic Dynamics

This volume is centered around the issue of market design and resulting market dynamics. The economic crisis of 2007-2009 has once again highlighted the importance of a proper design of market protocols and institutional details for economic dynamics and

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Dynamic Modeling and Econometrics in Economics and Finance Volume 13

Series Editors

Stefan Mittnik, University of Munich, Munich, Germany Willi Semmler, Bielefeld University, Bielefeld, Germany and New School for Social Research, New York, USA

Aims and Scope

The series will place particular focus on monographs, surveys, edited volumes, conference proceedings and handbooks on: • Nonlinear dynamic phenomena in economics and finance, including equilibrium, disequilibrium, optimizing and adaptive evolutionary points of view; nonlinear and complex dynamics in microeconomics, finance, macroeconomics and applied fields of economics. • Econometric and statistical methods for analysis of nonlinear processes in economics and finance, including computational methods, numerical tools and software to study nonlinear dependence, asymmetries, persistence of fluctuations, multiple equilibria, chaotic and bifurcation phenomena. • Applications linking theory and empirical analysis in areas such as macrodynamics, microdynamics, asset pricing, financial analysis and portfolio analysis, international economics, resource dynamics and environment, industrial organization and dynamics of technical change, labor economics, demographics, population dynamics, and game theory. The target audience of this series includes researchers at universities and research and policy institutions, students at graduate institutions, and practitioners in economics, finance and international economics in private or government institutions.

Computational Methods in Economic Dynamics by editors

Herbert Dawid University of Bielefeld, Germany

and

Willi Semmler New School for Social Research, USA

Editors Professor Herbert Dawid Department of Economics and Business Administration University of Bielefeld Universitätsstr. 25 33501 Bielefeld Germany [email protected]

Professor Willi Semmler Department of Economics New School for Social Research 79 Fifth Ave. New York, NY 10003 USA [email protected]

ISSN 1566-0419 ISBN 978-3-642-16942-7 e-ISBN 978-3-642-16943-4 DOI 10.1007/978-3-642-16943-4 Springer Heidelberg Dordrecht London New York Library of Congress Control Number: 2011923539 © Springer-Verlag Berlin Heidelberg 2011 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such name