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Uncomputability and Undecidability in Economic Theory

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Author Info
K. Vela Velupillai ()
Abstract

Economic theory, game theory and mathematical statistics have all increasingly become algorithmic sciences. Computable Economics, Algorithmic Game Theory ([28]) and Algorithmic Statistics ([13]) are frontier research subjects. All of them, each in its own way, are underpinned by (classical) recursion theory - and its applied branches, say computational complexity theory or algorithmic information theory - and, occasionally, proof theory. These research paradigms have posed new mathematical and metamathematical questions and, inadvertently, undermined the traditional mathematical foundations of economic theory. A concise, but partial, pathway into these new frontiers is the subject matter of this paper. Interpreting the core of mathematical economic theory to be defined by General Equilibrium Theory and Game Theory, a general - but concise - analysis of the computable and decidable content of the implications of these two areas are discussed. Issues at the frontiers of macroeconomics, now dominated by Recursive Macroeconomic Theory, are also tackled, albeit ultra briefly. The point of view adopted is that of classical recursion theory and varieties of constructive mathematics.

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Publisher Info
Paper provided by Department of Economics, University of Trento, Italia in its series Department of Economics Working Papers with number 0806.

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Date of creation: 2008
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Handle: RePEc:trn:utwpde:0806

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Related research
Keywords: General Equilibrium Theory; Game Theory; Recursive Macro-economics; (Un)computability; (Un)decidability; Constructivity;

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Find related papers by JEL classification:
C60 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - General
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C79 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Other

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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.:
  1. Arrow, Kenneth J, 1986. "Rationality of Self and Others in an Economic System," Journal of Business, University of Chicago Press, vol. 59(4), pages S385-99, October. [Downloadable!] (restricted)
  2. K. Vela Velupillai, 2007. "Taming the Incomputable, Reconstructing the Nonconstructive and Deciding the Undecidable in Mathematical Economics," Department of Economics Working Papers 0722, Department of Economics, University of Trento, Italia. [Downloadable!]
  3. K. Vela Velupillai, 2005. "The unreasonable ineffectiveness of mathematics in economics," Cambridge Journal of Economics, Oxford University Press, vol. 29(6), pages 849-872, November. [Downloadable!] (restricted)
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