Genetic innovation, intermediate goods and energy prices in an agent-based model

Client/Funding Institution

Anniversary Fund of the Oesterreichische Nationalbank


Agent-based models have been receiving ever more attention in recent years. Especially since the crisis of 2008, there have been calls for new research tools. Agent-based models are an interesting option: they allow study of the behaviour of heterogeneous agents and the effects of such heterogeneity on the total economy. We propose introducing three novel extensions to a state-of-the-art agent-based model: First, we allow for rich interactions between industries by incorporating intermediate goods into the production process. Secondly, the model is extended to enable a new way to model technological change (“genetic optimisation”). Thirdly, we propose to account for the biophysical dimension by including energy usage as a factor of production.

Funded by the Anniversary Fund of the Oesterreichische Nationalbank (Project No. 18830).


March 2023 - August 2025

wiiw team Leader

Oliver Reiter

wiiw Staff

Birgit Buschbom, Michael Landesmann, Andreas Lichtenberger, Bernhard Schütz, Robert Stehrer

Keywords: agent-based model, industry structure, genetic optimisation, input substitution, biophysical model, technological progress

Countries covered: Austria

Research Areas: Macroeconomic Analysis and Policy, Sectoral studies