Agent (economics)

agentsagenteconomic agenteconomic agentseconomic actorsmarket playersdecision makerseconomic firmseconomicsindividuals
In economics, an agent is an actor and more specifically a decision maker in a model of some aspect of the economy.wikipedia
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Economics

economiceconomisteconomic theory
In economics, an agent is an actor and more specifically a decision maker in a model of some aspect of the economy.
Economics focuses on the behaviour and interactions of economic agents and how economies work.

Microfoundations

microeconomic foundationsmicrofoundedattempts at establishing micro-foundations
Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy.
In economics, the microfoundations are the microeconomic behavior of individual agents, such as households or firms, that underpins an economic theory.

Dynamic stochastic general equilibrium

DSGEgeneral equilibriumderived by aggregating microeconomic models
Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy.
:Given that the structure of an econometric model consists of optimal decision-rules of economic agents, and that optimal decision-rules vary systematically with changes in the structure of series relevant to the decision maker, it follows that any change in policy will systematically alter the structure of econometric models.

Principal–agent problem

agency theoryprincipal-agent problemagency problem
The term agent is also used in relation to principal–agent models; in this case it refers specifically to someone delegated to act on behalf of a principal.
The principal–agent problem, in political science and economics (also known as agency dilemma or the agency problem) occurs when one person or entity (the "agent"), is able to make decisions and/or take actions on behalf of, or that impact, another person or entity: the "principal".

Decision-making

decision makingdecisionsdecision
In economics, an agent is an actor and more specifically a decision maker in a model of some aspect of the economy.

Mathematical optimization

optimizationmathematical programmingoptimal
Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem.
Economics is closely enough linked to optimization of agents that an influential definition relatedly describes economics qua science as the "study of human behavior as a relationship between ends and scarce means" with alternative uses.

Agent-based computational economics

agent-basedagent-based computational modelingAgent-based models
In agent-based computational economics, corresponding agents are "computational objects modeled as interacting according to rules" over space and time, not real people.
Agent-based computational economics (ACE) is the area of computational economics that studies economic processes, including whole economies, as dynamic systems of interacting agents.

Macroeconomic model

macroeconomic modelsmacroeconomic modellingmodels
Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy.
These models begin by specifying the set of agents active in the economy, such as households, firms, and governments in one or more countries, as well as the preferences, technology, and budget constraint of each one.

Representative agent

Agentrepresentativerepresentative consumer
An economic model in which all agents of a given type (such as all consumers, or all firms) are assumed to be exactly identical is called a representative agent model.
More technically, an economic model is said to have a representative agent if all agents of the same type are identical.

Demand set

A demand set is a model of the most-preferred bundle of goods an agent can afford.

Market participant

market participation exception
The term market participant is another term for economic agent, an actor and more specifically a decision maker in a model of some aspect of the economy.

Well-defined

well definedclearly definedconsistent and reliable
Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem.

Choice

choiceschooseelective
Typically, every agent makes decisions by solving a well- or ill-defined optimization or choice problem.

Partial equilibrium

partial-equilibriumpartial equilibrium theorypartial'' equilibrium
For example, buyers and sellers are two common types of agents in partial equilibrium models of a single market.

Household

householdshead of the householddomestic life
Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy.

Legal person

legal personalitylegal entitybody corporate
Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy.

Government

Form of governmentgovernmentsgovernmental
Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy.

Central bank

central bankscentral bankingcentral banking system
Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy.

Principal (commercial law)

principalathlete or coachPrincipal director
The term agent is also used in relation to principal–agent models; in this case it refers specifically to someone delegated to act on behalf of a principal.

Economic model

modelmodelseconomic models
In economics, an agent is an actor and more specifically a decision maker in a model of some aspect of the economy. An economic model in which all agents of a given type (such as all consumers, or all firms) are assumed to be exactly identical is called a representative agent model.

Heterogeneity in economics

heterogeneous agentsheterogeneityunobserved heterogeneity
A model which recognizes differences among agents is called a heterogeneous agent model.

Prudence

PrudentiaImprudenceprudent
For example, considering heterogeneity in age is likely to be necessary in a model used to study the economic effects of pensions; considering heterogeneity in wealth is likely to be necessary in a model used to study precautionary saving or redistributive taxation.

Global financial system

global financeinternational financial systeminternational financial institutions
The global financial system is the worldwide framework of legal agreements, institutions, and both formal and informal economic actors that together facilitate international flows of financial capital for purposes of investment and trade financing.