What is Computational Economics?

Computational economics is a discipline that is related to computer science, economics and management science. Computational models are developed for economic systems.

” Computational economics uses computer-based economic modeling for the solution of analytically and statistically formulated economic problems. A research program, to that end, is agent-based computational economics (ACE), the computational study of economic processes, including whole economies, as dynamic systems of interacting agents. As such, it is an economic adaptation of the complex adaptive systems paradigm. Here the “agent” refers to “computational objects modeled as interacting according to rules,” not real people. Agents can represent social, biological, and/or physical entities. The theoretical assumption of mathematical optimization by agents in equilibrium is replaced by the less restrictive postulate of agents with bounded rationality adapting to market forces, including game-theoretical contexts. Starting from initial conditions determined by the modeler, an ACE model develops forward through time has driven solely by agent interactions. The ultimate scientific objective of the method is “to … test theoretical findings against real-world data in ways that permit empirically supported theories to cumulate over time, with each researcher’s work building appropriately on the work that has gone before.”

Computational solution tools include for example software for carrying out various matrix operations (e.g. matrix inversion) and for solving systems of linear and nonlinear equations. For a repository of public-domain computational solution tools.

The following journals specialize in computational economics: ACM Transactions on Economics and ComputationComputational EconomicsJournal of Applied EconometricsJournal of Economic Dynamics and Control, and the Journal of Economic Interaction and Coordination.”  Source: https://en.wikipedia.org/wiki/Computational_economics