Mr BoShambles
jambiguous
Very interested to hear anyone's thoughts on the field of evolutionary economics. In particular the use of complexity theory and systems analysis:
'Complexity economics is the application of complexity science to the problems of economics. This new mode of economic thought rejects traditional assumptions that imply that the economy is a closed system that eventually reaches an equilibrium. Instead, it views economies as open complex adaptative systems with endogenous evolution. Complex systems do not necessarily settle to equilibrium — even ideal deterministic models may exhibit chaos, which is distinct from both random (nondeterministic) and analytic behavior.
Complexity economics rejects many aspects of traditional economic theory. The mathematic models used by traditional economics were copied from early models of thermodynamics. These mathematic models of economics were solely based on the first law of thermodynamics, equilibrium. Later, the second law of thermodynamics, entropy, was discovered. Proponents of complexity economics claim that traditional economic models never adapted to the latter discovery and thus remain incomplete models of reality.
Complexity economics is built on foundations of a long-standing tradition of heterodox economics that includes areas such as behavioral economics, institutional economics, Austrian economics, and evolutionary economics.'
from: http://en.wikipedia.org/wiki/Complexity_economics
This kind of approach has been adopted by IEPE (Institutional Evolutionary Political Economy) theorists. Phillip O'Hara:
'IEPE is dynamic, circuitous perspective on the world in the process of uneven development and varying levels of divergence due to the asymmetric distribution of information, resources, power and networks. It tends to eschew equilibrium analysis in favour of the complex interplay of endogenous forces operating through circular and cumulative causation. History plays a critical role in its theory and practice through the notions of hysteresis and path dependence, as well as a systems view of economy set in a social and ecological environment. It seeks to be a realistic view of the evolution and metamorphosis of economic systems, recognising the change is ongoing and, therefore, principles are always in the process of revision and reassessment in light of new evidence and developments.'
Read more:
http://en.wikipedia.org/wiki/Evolutionary_economics
'Complexity economics is the application of complexity science to the problems of economics. This new mode of economic thought rejects traditional assumptions that imply that the economy is a closed system that eventually reaches an equilibrium. Instead, it views economies as open complex adaptative systems with endogenous evolution. Complex systems do not necessarily settle to equilibrium — even ideal deterministic models may exhibit chaos, which is distinct from both random (nondeterministic) and analytic behavior.
Complexity economics rejects many aspects of traditional economic theory. The mathematic models used by traditional economics were copied from early models of thermodynamics. These mathematic models of economics were solely based on the first law of thermodynamics, equilibrium. Later, the second law of thermodynamics, entropy, was discovered. Proponents of complexity economics claim that traditional economic models never adapted to the latter discovery and thus remain incomplete models of reality.
Complexity economics is built on foundations of a long-standing tradition of heterodox economics that includes areas such as behavioral economics, institutional economics, Austrian economics, and evolutionary economics.'
from: http://en.wikipedia.org/wiki/Complexity_economics
This kind of approach has been adopted by IEPE (Institutional Evolutionary Political Economy) theorists. Phillip O'Hara:
'IEPE is dynamic, circuitous perspective on the world in the process of uneven development and varying levels of divergence due to the asymmetric distribution of information, resources, power and networks. It tends to eschew equilibrium analysis in favour of the complex interplay of endogenous forces operating through circular and cumulative causation. History plays a critical role in its theory and practice through the notions of hysteresis and path dependence, as well as a systems view of economy set in a social and ecological environment. It seeks to be a realistic view of the evolution and metamorphosis of economic systems, recognising the change is ongoing and, therefore, principles are always in the process of revision and reassessment in light of new evidence and developments.'
Read more:
http://en.wikipedia.org/wiki/Evolutionary_economics
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