The Epistemology of Simulation, Computation and Dynamics in Economics
AbstractComputation and Simulation have always played a role in economics – whether it be pure economic theory or any variant of applied, especially policy oriented, macro and micro economics or what has increasingly come to be called empirical economics. This is a tradition that can, without too much difficulty, be traced to the spirit and vision of the founding father of Political Economy --as Political Arithmetic -- by William Petty, whose finest exponent was, in my opinion, Richard Stone, in modern times a noble tradition whose living custodian is Lance Taylor. In this paper their spirit is the driving force, but it is given new theoretical foundations, mainly as a result of developments in the mathematics underpinnings of the tremendous developments in the potentials of computing, especially using digital technology. A running theme in this essay is the recognition --never neglected by Petty, Stone or Taylor --that, increasingly, the development of economic theory seems to go hand in hand with advances in the theory and practice of computing, which is, in turn, a catalyst for the move away from too much reliance on any kind of mathematics for the formalisation of economic entities that is inconsistent with the mathematical, philosophical and epistemological foundations of the digital computer.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by ASSRU - Algorithmic Social Science Research Unit in its series ASSRU Discussion Papers with number 1218.
Date of creation: 2012
Date of revision:
Simulation; Computation; Computable; Analysis; Dynamics Proof; Algorithm;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-03 (All new papers)
- NEP-CMP-2012-11-03 (Computational Economics)
- NEP-HME-2012-11-03 (Heterodox Microeconomics)
- NEP-HPE-2012-11-03 (History & Philosophy of Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charles R. Plott & Jared Smith, 1999.
"Instability of Equilibria in Experimental Markets: Upward-Sloping Demands, Externalities, and Fad-Like Incentives,"
Southern Economic Journal,
Southern Economic Association, vol. 65(3), pages 405-426, January.
- Plott, Charles R. & Smith, Jared, 1992. "Instability of Equilibria in Experimental Markets: Upward-Sloping Demands, Externalities, and Fad-Like Incentives," Working Papers 816, California Institute of Technology, Division of the Humanities and Social Sciences.
- Ragupathy Venkatachalam & Velupillai Kumaraswamy Vela, 2012. "Origins and Early Development of the Nonlinear Endogenous Mathematical Theory of the Business Cycle," Economia politica, Società editrice il Mulino, issue 1, pages 45-80.
- Stefano Zambelli, 2010.
"Flexible Accelerator Economic Systems as Coupled Oscillators,"
ASSRU Discussion Papers
1004, ASSRU - Algorithmic Social Science Research Unit.
- Stefano Zambelli, 2011. "Flexible Accelerator Economic Systems As Coupled Oscillators," Journal of Economic Surveys, Wiley Blackwell, vol. 25(3), pages 608-633, 07.
- Selda (Ying Fang) Kao & K. Vela Velupillai, 2011. "Behavioural Economics: Classical and Modern," ASSRU Discussion Papers 1126, ASSRU - Algorithmic Social Science Research Unit.
- K. Vela Velupillai, 2006.
"Variations on the Theme of Conning in Mathematical Economics,"
112, National University of Ireland Galway, Department of Economics, revised 2006.
- K. Vela Velupillai, 2007. "Variations on the Theme of Conning in Mathematical Economics," Department of Economics Working Papers 0703, Department of Economics, University of Trento, Italia.
- Tesfatsion, Leigh, 2006.
"Agent-Based Computational Economics: A Constructive Approach to Economic Theory,"
Staff General Research Papers
12514, Iowa State University, Department of Economics.
- Tesfatsion, Leigh, 2006. "Agent-Based Computational Economics: A Constructive Approach to Economic Theory," Handbook of Computational Economics, in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 16, pages 831-880 Elsevier.
- Leigh Tesfatsion, 2006. "Agent-Based Computational Economics: A Constructive Approach to Economic Theory," Computing in Economics and Finance 2006 527, Society for Computational Economics.
- K. Vela Velupillai, 2007. "A Computable Economist’s Perspective on Computational Complexity," Department of Economics Working Papers 0723, Department of Economics, University of Trento, Italia.
- Kumaraswamy Velupillai, . "The Computable Approach to Economics," Working Papers _005, University of California at Los Angeles, Center for Computable Economics.
- Velupillai, K Vela, 1999. " Undecidability, Computation Universality and Minimality in Economic Dynamics," Journal of Economic Surveys, Wiley Blackwell, vol. 13(5), pages 653-73, December.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, October.
- Velupillai Kumaraswamy Vela, 2013.
"Turing's Economics. A Birth Centennial Homage,"
Società editrice il Mulino, issue 1, pages 13-32.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (firstname.lastname@example.org).
If references are entirely missing, you can add them using this form.