BMAC8102 - Complexity & Behaviour


Lessons are not given in the academic year 2021/2022

Course content

The leading paradigm in economics and finance assumes that all economic agents (households, firms, investors) are perfectly rational in making their decisions. This leads to the standard representative rational agent model. In this course we view the economy as a complex system with interacting boundedly rational heterogeneous agents. A central question is: which emerging aggregate behavior arises through the interactions of individual decisions of boundedly rational heterogeneous agents at the micro level?

Topics include:

  • Introduction to complex dynamics, chaos and bifurcations
  • Animal spirits and boom and bust cycles
  • Expectations and adaptive learning
  • Agent-based models
  • Heterogeneous agents models
  • Experimental macro & finance
  • Behavioural macro & finance

Learning outcome

Knowledge: At the end of the course, students will gain deep knowledge in: 

  • Knowledge of complex systems 
  • Stability and bifurcation analysis of nonlinear systems 

Skills and competence: 

  • Use of E&F chaos software 
  • Up-to-date with recent developments in behavioural & experimental macro-finance

Further on evaluation

The examination consists in an essay based on group works. Students team up to study one or more relevant papers and summarize the main contributions as well as critical assess the underlying models and assumptions.

Required previous knowledge

MSc degree

More on the course



Version: 1
Credits:  3.0 SP
Study level: Doctoral degree level



Language of instruction: English

Location: Trondheim

Subject area(s)
  • Computer Science
  • Business Economics
  • Financial Economics
  • Physics
  • Mathematics
  • Economics and Administration
  • Economics
  • Management Accounting and Control
Contact information

Department with academic responsibility
NTNU Business School


  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

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