The Center for Nonlinear Dynamics in Economics and Finance (CeNDEF) is a multi-disciplinary research group, started in October 1998, by a Pionier-grant from the Netherlands Organization for Scientific Research (NWO). CeNDEF is located at the Amsterdam School of Economics, of the Faculty of Economics and Business of the University of Amsterdam.
CeNDEF consists of a group of senior researchers, post-doctoral research fellows and PhD students from various fields, including economic theory, finance, mathematics, physics, statistics, econometrics and psychology. The main field of research is nonlinear complex systems in economics and finance in a broad sense. Emphasis is given to behavioral macroeconomics and behavioral finance models. Research themes include behavioral macroeconomics, evolutionary finance, endogenous fluctuations, heterogeneous interacting agents, bounded rationality, expectation formation and learning, evolutionary dynamics, complex nonlinear systems and agent-based modeling.
The CeNDEF research program is a mixture of theoretical, empirical as well as experimental work using a balanced mixture of analytical and computational tools. CeNDEF work emphasizes bounded rationality models, where agents search for simple "rules of thumb" that perform reasonably well. Special attention is given to the role of market psychology in financial markets. Laboratory experiments are carried out in the CREED experimental laboratory. A recent research focus is on policy analysis based on behavioral macroeconomic-financial models with heterogeneous agents.