Multi-agent systems as a tool for analyzing path-dependent macrodynamics

•Path dependence is defined and different concepts of path dependence are discussed.•Practical difficulties associated with building path-dependent macrodynamic models are identified.•Multi-agent systems (MAS) analysis is shown to be a means for addressing these difficulties.•A concrete example is provided in the form of a simple but illustrative MAS model of path-dependent aggregate fluctuations.

This paper discusses the concept of path dependence in macrodynamics, and identifies practical difficulties associated with building path-dependent macrodynamic models of the sort that Keynesians and Schumpeterians regard as necessary for the successful study of long-term growth and development. It is suggested that multi-agent systems (MAS) analysis can help address these difficulties, and therefore provides a useful tool for advancing path-dependent macrodynamic analysis. A concrete example is provided in the form of a simple but illustrative MAS model of path-dependent aggregate fluctuations.