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Economics And Complexity

In: Industry And Labor Dynamics The Agent-Based Computational Economics Approach

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  • ALAN KIRMAN

    (CGREQAM, EHESS, Universite d’Aix Marseille, 2 Rue de la Charite, 13002 Marseille, France)

Abstract

This paper presents a view of the economy as a complex system with heterogeneous interacting agents who collectively organise themselves to generate aggregate phenomena which cannot be regarded as the behaviour of some average or representative individual. There is an essential difference between the aggregate and the individual and such phenomena as bubbles and crashes, herd behaviour the transmission of information and the organisation of trade are better modelled in the sort of framework suggested here than in more standard economic models.

Suggested Citation

  • Alan Kirman, 2004. "Economics And Complexity," World Scientific Book Chapters, in: Roberto Leombruni & Matteo Richiardi (ed.), Industry And Labor Dynamics The Agent-Based Computational Economics Approach, chapter 2, pages 3-21, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812702258_0002
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    References listed on IDEAS

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    1. Shiller, Robert J, 1989. " Comovements in Stock Prices and Comovements in Dividends," Journal of Finance, American Finance Association, vol. 44(3), pages 719-729, July.
    2. Giovanni Dosi, 2000. "Innovation, Organization and Economic Dynamics," Books, Edward Elgar Publishing, number 1248.
    3. Robert J. Shiller, 1989. "Comovements in Stock Prices and Comovements in Dividends," Journal of Finance, American Finance Association, vol. 44(3), pages 719-729, July.
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    Cited by:

    1. J. Silvestre, & T. Araújo & M. St. Aubyn, 2016. "Economic growth and individual satisfaction in an agent-based economy," Working Papers Department of Economics 2016/19, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    2. Almas Heshmati & Flávio Lenz-Cesar, 2015. "Policy simulation of firms’ cooperation in innovation," Research Evaluation, Oxford University Press, vol. 24(3), pages 293-311.
    3. Tanya Araújo & Miguel St. Aubyn, 2008. "Education, Neighborhood Effects And Growth: An Agent-Based Model Approach," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 99-117.
    4. Tanya Araujo & R. Vilela Mendes, 2006. "Market-oriented innovation: When is it profitable? An abstract agent-based study," Working Papers Department of Economics 2006/31, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    5. João Silvestre & Tanya Araújo & Miguel St. Aubyn, 2019. "Individual Satisfaction and Economic Growth in an Agent-Based Economy," Computational Economics, Springer;Society for Computational Economics, vol. 54(3), pages 893-903, October.
    6. Jean-Sébastien Lenfant, 2011. "General equilibrium after Sonnenschein, Mantel and Debreu: Trends and perspectives [L'équilibre général depuis Sonnenschein, Mantel et Debreu : courants et perspectives]," Post-Print hal-01742978, HAL.
    7. Tanya Araújo & Rui Vilela Mendes, 2007. "Innovation Success and Structural Change: An Abstract Agent Based Study," Working Papers Department of Economics 2007/25, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    8. Heshmati, Almas & Lenz-Cesar, Flávio, 2013. "Determinants and Policy Simulation of Firms Cooperation in Innovation," IZA Discussion Papers 7487, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Simulation; Agent-Based; Computational Economics; Labor; Industrial Dynamics; Innovation; Cluster; Firm Behavior;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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