On the Complexities of Complex Economic Dynamics

J. Barkley Rosser

Journal of Economic Perspectives, 1999, vol. 13, issue 4, 169-192

Abstract: Complex economic nonlinear dynamics endogenously do not converge to a point, a limit cycle, or an explosion. Their study developed out of earlier studies of cybernetic, catastrophic, and chaotic systems. Complexity analysis stresses interactions among dispersed agents without a global controller, tangled hierarchies, adaptive learning, evolution, and novelty, and out-of-equilibrium dynamics. Complexity methods include interacting particle systems, self-organized criticality, and evolutionary game theory, to simulate artificial stock markets and other phenomena. Theoretically, bounded rationality replaces rational expectations. Complexity theory influences empirical methods and restructures policy debates.

JEL-codes: C61 (search for similar items in EconPapers)
Date: 1999
Note: DOI: 10.1257/jep.13.4.169
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Citations: View citations in EconPapers (108)

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