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HandWiki. Complexity Economics. Encyclopedia. Available online: https://encyclopedia.pub/entry/37111 (accessed on 20 September 2026).
HandWiki. Complexity Economics. Encyclopedia. Available at: https://encyclopedia.pub/entry/37111. Accessed September 20, 2026.
HandWiki. "Complexity Economics" Encyclopedia, https://encyclopedia.pub/entry/37111 (accessed September 20, 2026).
HandWiki. (2022, November 29). Complexity Economics. In Encyclopedia. https://encyclopedia.pub/entry/37111
HandWiki. "Complexity Economics." Encyclopedia. Web. 29 November, 2022.
Complexity Economics
Edit

Complexity economics is the application of complexity science to the problems of economics. It sees the economy not as a system in equilibrium, but as one in motion, perpetually constructing itself anew. It uses computational and mathematical analysis to explore how economic structure is formed and reformed, in continuous interaction with the adaptive behavior of the 'agents' in the economy.

mathematical analysis complexity science complexity

References

  1. Rosser Jr, J. Barkley (1999). "On the Complexities of Complex Economic Dynamics". Journal of Economic Perspectives 13 (4): 169–192. doi:10.1257/jep.13.4.169. http://www.aeaweb.org/articles.php?doi=10.1257/jep.13.4.169. 
  2. Hidalgo, Cesar A.; Hausmann Ricardo (2009). "The Building Block of Economic Complexity". PNAS 106 (26): 10570–10575. doi:10.1073/pnas.0900943106. PMID 19549871. Bibcode: 2009PNAS..10610570H.  http://www.pubmedcentral.nih.gov/articlerender.fcgi?tool=pmcentrez&artid=2705545
  3. Hausmann & Hidalgo (2011). The Atlas of Economic Complexity: Mapping Paths to Prosperity. Cambridge, MA: The MIT Press. ISBN 978-0615546629. http://atlas.media.mit.edu/static/pdf/atlas/AtlasOfEconomicComplexity.pdf. 
  4. "Complexity matters". The Economist. Oct 27, 2011. https://www.economist.com/blogs/freeexchange/2011/10/buidling-blocks-economic-growth. 
  5. "Diversity Training". The Economist. Feb 4, 2010. http://www.economist.com/node/15452697?story_id=15452697. 
  6. Tacchella, Andrea (10 October 2012). "A New Metrics for Countries' Fitness and Products' Complexity". Scientific Reports 2 (723): 723. doi:10.1038/srep00723. PMID 23056915. Bibcode: 2012NatSR...2E.723T.  http://www.pubmedcentral.nih.gov/articlerender.fcgi?tool=pmcentrez&artid=3467565
  7. Cristelli, Matthieu (2013). "Measuring the Intangibles: A Metrics for the Economic Complexity of Countries and Products". PLOS ONE 8 (8): e70726. doi:10.1371/journal.pone.0070726. PMID 23940633. Bibcode: 2013PLoSO...870726C.  http://www.pubmedcentral.nih.gov/articlerender.fcgi?tool=pmcentrez&artid=3733723
  8. "Economic Complexity: Measuring the Intangibles. A Consumer's Guide". http://pilhd.phys.uniroma1.it/PILgroup_Economic_Complexity/Home_files/economic_complexity_flyer%20_v2_1.pdf. 
  9. "National Strategy for Sweden: From Wealth to Well-being". BCG. http://www.bcg.se/expertise_impact/publications/publicationdetails.aspx?id=tcm:106-145990. 
  10. Arthur, Brian; Durlauf, Steven; Lane, David A (1997). "Introduction: Process and Emergence in the Economy". The Economy as an Evolving Complex System II. Reading, Mass.: Addison-Wesley. http://www.santafe.edu/~wbarthur/Papers/ADLIntro.html. Retrieved 2008-08-26. 
  11. Shiozawa, Y. (2004). "Evolutionary Economics in the 21st Century: A Manifest". Evolutionary and Institutional Economics Review 1 (1): 5–47. doi:10.14441/eier.1.5.  https://dx.doi.org/10.14441%2Feier.1.5
  12. Albert-László Barabási "explaining (at 27:07) that no two events are completely isolated in the BBC Documentary". BBC. http://topdocumentaryfilms.com/six-degrees-of-separation/.  "Unfolding the science behind the idea of six degrees of separation"
  13. "Page 20 - Ten Principles of Complexity & Enabling Infrastructures". by Professor Eve Mitleton-Kelly, Director Complexity Research Programme, London School of Economics. http://psych.lse.ac.uk/complexity/Papers/Ch2final.pdf. 
  14. Colander, David (March 2008). "Complexity and the History of Economic Thought". http://sandcat.middlebury.edu/econ/repec/mdl/ancoec/0804.pdf. 
  15. Rosser Jr, J. Barkley (1983). "Reswitching as a Cusp Catastrophe". Journal of Economic Theory 31: 182–193. doi:10.1016/0022-0531(83)90029-7.  https://dx.doi.org/10.1016%2F0022-0531%2883%2990029-7
  16. Ahmad, Syed Capital in Economic Theory: Neo-classical, Cambridge, and Chaos. Brookfield: Edward Elgar (1991)
  17. Sato, Yuzuru; Akiyama, Eizo; Farmer, J. Doyne (2002). "Chaos in learning a simple two-person game". Proceedings of the National Academy of Sciences of the United States of America 99 (7): 4748–4751. doi:10.1073/pnas.032086299. PMID 11930020. Bibcode: 2002PNAS...99.4748S.  http://www.pubmedcentral.nih.gov/articlerender.fcgi?tool=pmcentrez&artid=123719
  18. Krause, Ulrich. "Collective Dynamics of Faustian Agents", in Economic Theory and Economic Thought: Essays in honour of Ian Steedman (ed. by John Vint et al.) Routledge: 2010.
  19. Flaschel, Peter; Proano, Christian R. (2009). "The J2 Status of 'Chaos' in Period Macroeconomics Models". Studies in Nonlinear Dynamics & Econometrics 13 (2): 2. doi:10.2202/1558-3708.1674. http://www.bepress.com/snde/vol13/iss2/art2/. 
  20. Saari, Donald G. Chaotic Elections: A Mathematician Looks at Voting. American Mathematical Society (2001).
  21. Bausor, Randall. "Qualitative dynamics in economics and fluid mechanics: a comparison of recent applications", in Natural Images in Economic Thought: Markets Read in Tooth and Claw (ed. by Philip Mirowski). Cambridge: Cambridge University Press (1994).
  22. Orlando, Giuseppe; Zimatore, Giovanna (18 December 2017). "RQA correlations on real business cycles time series". Indian Academy of Sciences – Conference Series 1 (1): 35–41. doi:10.29195/iascs.01.01.0009.  https://dx.doi.org/10.29195%2Fiascs.01.01.0009
  23. Orlando, Giuseppe; Zimatore, Giovanna (1 May 2018). "Recurrence quantification analysis of business cycles" (in en). Chaos, Solitons & Fractals 110: 82–94. doi:10.1016/j.chaos.2018.02.032. ISSN 0960-0779. Bibcode: 2018CSF...110...82O. https://www.sciencedirect.com/science/article/abs/pii/S0960077918300924. 
  24. Orlando, Giuseppe; Zimatore, Giovanna (1 August 2020). "Business cycle modeling between financial crises and black swans: Ornstein–Uhlenbeck stochastic process vs Kaldor deterministic chaotic model". Chaos: An Interdisciplinary Journal of Nonlinear Science 30 (8): 083129. doi:10.1063/5.0015916. PMID 32872798. Bibcode: 2020Chaos..30h3129O. https://aip.scitation.org/doi/10.1063/5.0015916. 
  25. Orlando, Giuseppe (2021), Orlando, Giuseppe; Pisarchik, Alexander N.; Stoop, Ruedi, eds., "Kaldor–Kalecki New Model on Business Cycles" (in en), Nonlinearities in Economics: An Interdisciplinary Approach to Economic Dynamics, Growth and Cycles, Dynamic Modeling and Econometrics in Economics and Finance (Cham: Springer International Publishing) 29: pp. 247–268, doi:10.1007/978-3-030-70982-2_16, ISBN 978-3-030-70982-2, https://doi.org/10.1007/978-3-030-70982-2_16, retrieved 2021-09-10 
  26. Araujo, Ricardo Azevedo; Moreira, Helmar Nunes (2021), Orlando, Giuseppe; Pisarchik, Alexander N.; Stoop, Ruedi, eds., "Testing a Goodwin's Model with Capacity Utilization to the US Economy" (in en), Nonlinearities in Economics: An Interdisciplinary Approach to Economic Dynamics, Growth and Cycles, Dynamic Modeling and Econometrics in Economics and Finance (Cham: Springer International Publishing): pp. 295–313, doi:10.1007/978-3-030-70982-2_19, ISBN 978-3-030-70982-2, https://doi.org/10.1007/978-3-030-70982-2_19, retrieved 2021-09-10 
  27. Orlando, Giuseppe; Rossa, Fabio Della (2021), Orlando, Giuseppe; Pisarchik, Alexander N.; Stoop, Ruedi, eds., "An Empirical Test of Harrod's Model" (in en), Nonlinearities in Economics: An Interdisciplinary Approach to Economic Dynamics, Growth and Cycles, Dynamic Modeling and Econometrics in Economics and Finance (Cham: Springer International Publishing): pp. 283–294, doi:10.1007/978-3-030-70982-2_18, ISBN 978-3-030-70982-2, https://doi.org/10.1007/978-3-030-70982-2_18, retrieved 2021-09-10 
  28. (in en-gb) Nonlinearities in Economics | SpringerLink. Dynamic Modeling and Econometrics in Economics and Finance. 29. 2021. doi:10.1007/978-3-030-70982-2. ISBN 978-3-030-70981-5. https://link.springer.com/book/10.1007/978-3-030-70982-2#editorsandaffiliations. 
  29. "Economists today are not neoclassical according to any reasonable definition of the term. They are far more eclectic, and concerned with different issues than were the economists of the early 1900s, whom the term was originally designed to describe." (Colander 2000)
  30. "Modern economics involves a broader world view and is far more eclectic than the neoclassical terminology allows." (Colander 2000)
  31. "In our view, the interesting story in economics over the past decades is the increasing variance of acceptable views..." (Colander Holt)
  32. "In work at the edge, ideas that previously had been considered central to economics are being modified and broadened, and the process is changing the very nature of economics." (Colander Holt)
  33. "When certain members of the existing elite become open to new ideas, that openness allows new ideas to expand, develop, and integrate into the profession... These alternative channels allow the mainstream to expand, and to evolve to include a wider range of approaches and understandings... This, we believe, is already occurring in economics." (Colander Holt)
  34. "despite an increasing pluralism on the mainstream economics research frontier..." (Davis 2008)
  35. (Colander Holt)
  36. "The second (Santa Fe) conference saw a very different outcome and atmosphere than the first. No longer were mainstream economists defensively adhering to general equilibrium orthodoxy... By 1997, the mainstream accepted many of the methods and approaches that were associated with the complexity approach." (Colander Holt) (Colander Holt) distinguish between orthodox and mainstream economics.
  37. (Davis 2008)
  38. Horgan, John (1995). "From Complexity to Perplexity". Scientific American 272 (6): 104–09. doi:10.1038/scientificamerican0695-104. Bibcode: 1995SciAm.272f.104H.  https://dx.doi.org/10.1038%2Fscientificamerican0695-104
  39. Horgan, John, The End of Science: Facing the Limits of Knowledge in the Twilight of the Scientific Age. Paperback ed, New York: Broadway Books, 1997.
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