Can zero-growth economies be stable in agent-based models?
Implications of zero-growth economics analysed with an agent-based model
This paper explores the implications of a zero-growth economy within a capitalist framework using a multi-agent model. It examines whether a zero-growth trajectory is economically stable, especially with interest-bearing debt.
For LLM-based multi-agent systems, the key takeaway is the model's demonstration of emergent macroeconomic behavior from micro-level agent interactions, similar to how LLMs can generate complex outputs from simpler prompts. The paper also highlights the destabilizing potential of high debt levels within these systems and the relative stability achieved under zero growth, offering potential insights for controlling agent behavior and system stability in LLM-based multi-agent applications. The use of a multi-agent simulation allows for examining system dynamics at both micro and macro levels, which can be mirrored in testing and evaluating LLM-based agent interactions.