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Modeling complex systems

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  • Anastasios Xepapadeas

Abstract

Empirical observations suggest that linear dynamics are not an adequate representation of ecological systems and that a realistic representation would require adoption of complex nonlinear dynamical systems with characteristics encountered in complex adaptive systems (CAS). Adequate modeling should include and combine elements, such as strategic interactions among economic agents, nonconvexities induced by nonlinear feedbacks, separate spatial and temporal scales and modeling of spatiotemporal dynamics, and allowance of alternative time scales. Ignoring these characteristics might obscure very important features that we observe in reality, such as bifurcations and irreversibilities or hysteresis. As a consequence, the design of policies that do not take CAS characteristics into account might lead to erroneous results and undesirable states of managed economic-ecological systems. Copyright (c) 2010 International Association of Agricultural Economists.

Suggested Citation

  • Anastasios Xepapadeas, 2010. "Modeling complex systems," Agricultural Economics, International Association of Agricultural Economists, vol. 41(s1), pages 181-191, November.
  • Handle: RePEc:bla:agecon:v:41:y:2010:i:s1:p:181-191
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    Cited by:

    1. Louis-Gaëtan Giraudet & Céline Guivarch, 2016. "Global warming as an asymmetric public bad," Working Papers 2016.26, FAERE - French Association of Environmental and Resource Economists.
    2. Bondarev, Anton & Weigt, Hannes, 2017. "Sensitivity of energy system investments to policy regulation changes: Application of the blue sky catastrophe," Working papers 2017/08, Faculty of Business and Economics - University of Basel.
    3. repec:kap:enreec:v:67:y:2017:i:4:d:10.1007_s10640-016-0010-x is not listed on IDEAS

    More about this item

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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